SF.ST WACC - Weighted Average Cost of Capital

The WACC of Stillfront Group AB (publ) (SF.ST) is 9.0%.

The Cost of Equity of Stillfront Group AB (publ) (SF.ST) is 7.65%.

The Cost of Debt of Stillfront Group AB (publ) (SF.ST) is 13.75%.

	Range	Selected
Cost of equity	5.90% - 9.40%	7.65%
Tax rate	26.40% - 27.40%	26.90%
Cost of debt	5.00% - 22.50%	13.75%
WACC	4.6% - 13.4%	9.0%

WACC

SF.ST WACC calculation

Category	Low	High

Long-term bond rate	2.5%	3.0%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.66	0.97

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.90%	9.40%

Tax rate	26.40%	27.40%
Debt/Equity ratio	1.35	1.35
Cost of debt	5.00%	22.50%

After-tax WACC	4.6%	13.4%


Selected WACC	9.0%

SF.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 SF.ST:

cost_of_equity (7.65%) = risk_free_rate (2.75%) + equity_risk_premium (5.60%) * adjusted_beta (0.66) + 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.