SEYE.ST WACC - Weighted Average Cost of Capital
The WACC of Smart Eye AB (publ) (SEYE.ST) is 6.5%.
| Range | Selected | |
| Cost of equity | 5.3% - 7.8% | 6.55% |
| Tax rate | 1.1% - 4.2% | 2.65% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.3% - 7.7% | 6.5% |
| Category | Low | High |
| Long-term bond rate | 2.5% | 3.0% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.44 | 0.62 |
| Additional risk adjustments | 0.5% | 1.0% |
| Cost of equity | 5.3% | 7.8% |
| Tax rate | 1.1% | 4.2% |
| Debt/Equity ratio | 0.02 | 0.02 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.3% | 7.7% |
| Selected WACC | 6.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SEYE.ST | Smart Eye AB (publ) | 0.02 | 0.41 | 0.4 |
| ALDRV.PA | Drone Volt SA | 0.31 | 0.16 | 0.12 |
| ALM.PA | Alpha MOS SA | 0.1 | -1.1 | -1 |
| DETEC.HE | Detection Technology Oyj | 0 | 1.08 | 1.08 |
| GEA.PA | Gea Grenobloise Electronique Automatisme SA | 0 | 0.18 | 0.18 |
| M7U.DE | Nynomic AG | 0.21 | 0.55 | 0.46 |
| OTAQ.L | OTAQ PLC | 0.97 | -0.77 | -0.39 |
| PIP.L | Pipehawk PLC | 13.44 | 0.42 | 0.03 |
| V3S.DE | Vectron Systems AG | 0.26 | 0.59 | 0.46 |
| VGO.WA | Vigo System SA | 0.11 | 0.65 | 0.59 |
| Low | High | |
| Unlevered beta | 0.16 | 0.42 |
| Relevered beta | 0.16 | 0.43 |
| Adjusted relevered beta | 0.44 | 0.62 |
SEYE.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 SEYE.ST:
cost_of_equity (6.55%) = risk_free_rate (2.75%) + equity_risk_premium (5.60%) * adjusted_beta (0.44) + risk_adjustments (0.75%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.