SOLNA.ST WACC - Weighted Average Cost of Capital
The WACC of Solnaberg Property AB (publ) (SOLNA.ST) is 4.7%.
| Range | Selected | |
| Cost of equity | 4.7% - 6.6% | 5.65% |
| Tax rate | 21.5% - 23.2% | 22.35% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.3% - 5.1% | 4.7% |
| Category | Low | High |
| Long-term bond rate | 2.5% | 3.0% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.43 | 0.51 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.7% | 6.6% |
| Tax rate | 21.5% | 23.2% |
| Debt/Equity ratio | 1.24 | 1.24 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.3% | 5.1% |
| Selected WACC | 4.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SOLNA.ST | Solnaberg Property AB (publ) | 1.24 | 0.18 | 0.09 |
| CBB.MI | CleanBnB SpA | 0.03 | 0.3 | 0.29 |
| CRC.L | Circle Property PLC | 20.91 | -1.98 | -0.11 |
| EGNETY.CO | EgnsINVEST Ejendomme Tyskland A/S | 1.88 | 0.17 | 0.07 |
| FED.CO | Fast Ejendom Danmark A/S | 2.12 | 0.22 | 0.08 |
| INR1L.VS | INVL Baltic Real Estate SUTNTIB | 0.77 | 0.81 | 0.51 |
| KAPIAB.ST | Kalleback Property Invest AB | 0.65 | -0.13 | -0.09 |
| LOG.ST | Logistea AB (publ) | 24.71 | -0.03 | 0 |
| OVARO.HE | Ovaro Kiinteistosijoitus Oyj | 0.45 | 0.28 | 0.21 |
| TPFG.L | Property Franchise Group PLC | 0.05 | 0.4 | 0.39 |
| Low | High | |
| Unlevered beta | 0.08 | 0.14 |
| Relevered beta | 0.15 | 0.27 |
| Adjusted relevered beta | 0.43 | 0.51 |
SOLNA.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 SOLNA.ST:
cost_of_equity (5.65%) = risk_free_rate (2.75%) + equity_risk_premium (5.60%) * adjusted_beta (0.43) + 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.