STUDBO.ST WACC - Weighted Average Cost of Capital

The WACC of Studentbostader I Sverige AB (publ) (STUDBO.ST) is 4.6%.

The Cost of Equity of Studentbostader I Sverige AB (publ) (STUDBO.ST) is 5.45%.

The Cost of Debt of Studentbostader I Sverige AB (publ) (STUDBO.ST) is 7.50%.

	Range	Selected
Cost of equity	4.50% - 6.40%	5.45%
Tax rate	35.60% - 42.90%	39.25%
Cost of debt	4.00% - 11.00%	7.50%
WACC	2.9% - 6.3%	4.6%

WACC

STUDBO.ST WACC calculation

Category	Low	High

Long-term bond rate	2.5%	3.0%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.39	0.48

Additional risk adjustments	0.0%	0.5%
Cost of equity	4.50%	6.40%

Tax rate	35.60%	42.90%
Debt/Equity ratio	5.53	5.53
Cost of debt	4.00%	11.00%

After-tax WACC	2.9%	6.3%


Selected WACC	4.6%

STUDBO.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 STUDBO.ST:

cost_of_equity (5.45%) = risk_free_rate (2.75%) + equity_risk_premium (5.60%) * adjusted_beta (0.39) + 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.