SECI.ST
SECITS Holding AB
Price:  
0.01 
SEK
Volume:  
481,936
Sweden | Commercial Services & Supplies

SECI.ST WACC - Weighted Average Cost of Capital

The WACC of SECITS Holding AB (SECI.ST) is 10.0%.

The Cost of Equity of SECITS Holding AB (SECI.ST) is 9.55%.
The Cost of Debt of SECITS Holding AB (SECI.ST) is 12.75%.

RangeSelected
Cost of equity6.7% - 12.4%9.55%
Tax rate20.6% - 20.9%20.75%
Cost of debt7.0% - 18.5%12.75%
WACC5.8% - 14.2%10.0%
WACC

SECI.ST WACC calculation

CategoryLowHigh
Long-term bond rate2.5%3.0%
Equity market risk premium5.1%6.1%
Adjusted beta0.821.45
Additional risk adjustments0.0%0.5%
Cost of equity6.7%12.4%
Tax rate20.6%20.9%
Debt/Equity ratio
4.234.23
Cost of debt7.0%18.5%
After-tax WACC5.8%14.2%
Selected WACC10.0%

SECI.ST's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for SECI.ST:

cost_of_equity (9.55%) = risk_free_rate (2.75%) + equity_risk_premium (5.60%) * adjusted_beta (0.82) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.