SES.ST
Scandinavian Enviro Systems AB
Price:  
0.79 
SEK
Volume:  
5,685,676.00
Sweden | Commercial Services & Supplies
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SES.ST WACC - Weighted Average Cost of Capital

The WACC of Scandinavian Enviro Systems AB (SES.ST) is 6.3%.

The Cost of Equity of Scandinavian Enviro Systems AB (SES.ST) is 6.20%.
The Cost of Debt of Scandinavian Enviro Systems AB (SES.ST) is 20.20%.

Range Selected
Cost of equity 5.00% - 7.40% 6.20%
Tax rate 20.60% - 20.90% 20.75%
Cost of debt 7.00% - 33.40% 20.20%
WACC 5.0% - 7.5% 6.3%
WACC

SES.ST WACC calculation

Category Low High
Long-term bond rate 2.5% 3.0%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.29 0.47
Additional risk adjustments 1.0% 1.5%
Cost of equity 5.00% 7.40%
Tax rate 20.60% 20.90%
Debt/Equity ratio 0 0
Cost of debt 7.00% 33.40%
After-tax WACC 5.0% 7.5%
Selected WACC 6.3%

SES.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 SES.ST:

cost_of_equity (6.20%) = risk_free_rate (2.75%) + equity_risk_premium (5.60%) * adjusted_beta (0.29) + risk_adjustments (1.25%)

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