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.