STUDBO.ST WACC - Weighted Average Cost of Capital
The WACC of Studentbostader I Sverige AB (publ) (STUDBO.ST) is 4.6%.
| Range | Selected | |
| Cost of equity | 4.4% - 6.3% | 5.35% |
| Tax rate | 35.6% - 42.9% | 39.25% |
| Cost of debt | 4.0% - 11.0% | 7.5% |
| WACC | 2.8% - 6.3% | 4.6% |
| Category | Low | High |
| Long-term bond rate | 2.5% | 3.0% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.37 | 0.46 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.4% | 6.3% |
| Tax rate | 35.6% | 42.9% |
| Debt/Equity ratio | 6 | 6 |
| Cost of debt | 4.0% | 11.0% |
| After-tax WACC | 2.8% | 6.3% |
| Selected WACC | 4.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| STUDBO.ST | Studentbostader I Sverige AB (publ) | 6 | 0.25 | 0.05 |
| BERR.PA | Financiere Immobiliere Etang Berre Medit SA | 0.04 | 0.43 | 0.42 |
| CPG.WA | Capital Park SA | 1.09 | 0.01 | 0.01 |
| CZT.WA | Czerwona Torebka SA | 0.01 | -0.13 | -0.13 |
| EFI.PA | Eurasia Fonciere Investissements SA | 0.93 | 0.09 | 0.06 |
| IBS.WA | Noble Financials SA | 2.37 | 0.47 | 0.2 |
| KAMP.AT | REDS Real Estate Development and Services SA | 0.2 | -0.4 | -0.36 |
| PLAZ.L | Plaza Centers NV | 22.56 | 0.47 | 0.03 |
| RHD.WA | Reinhold Europe AB | 0.21 | -0.3 | -0.27 |
| SFPN.SW | SF Urban Properties AG | 1.13 | 0.03 | 0.02 |
| Low | High | |
| Unlevered beta | 0.01 | 0.04 |
| Relevered beta | 0.06 | 0.19 |
| Adjusted relevered beta | 0.37 | 0.46 |
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 (5.35%) = risk_free_rate (2.75%) + equity_risk_premium (5.60%) * adjusted_beta (0.37) + 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.