SVIK.ST WACC - Weighted Average Cost of Capital
The WACC of Studsvik AB (SVIK.ST) is 6.1%.
| Range | Selected | |
| Cost of equity | 5.2% - 7.4% | 6.3% |
| Tax rate | 17.8% - 21.3% | 19.55% |
| Cost of debt | 5.7% - 7.2% | 6.45% |
| WACC | 5.1% - 7.1% | 6.1% |
| Category | Low | High |
| Long-term bond rate | 2.5% | 3.0% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.52 | 0.64 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.2% | 7.4% |
| Tax rate | 17.8% | 21.3% |
| Debt/Equity ratio | 0.21 | 0.21 |
| Cost of debt | 5.7% | 7.2% |
| After-tax WACC | 5.1% | 7.1% |
| Selected WACC | 6.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SVIK.ST | Studsvik AB | 0.21 | 0.33 | 0.28 |
| ABO.BR | ABO-Group Environment NV | 0.59 | -0.25 | -0.17 |
| ATH.MI | Ambienthesis SpA | 1.15 | 0.48 | 0.25 |
| DBE.WA | DB Energy SA | 0.71 | 1.16 | 0.74 |
| FLTA.L | Filta Group Holdings PLC | 0.12 | 1.77 | 1.61 |
| GREEN.ST | Green Landscaping Group AB | 0.81 | 0.4 | 0.24 |
| GRI.MC | Grino Ecologic SA | 0.73 | -0.18 | -0.11 |
| INSE.L | Inspired Energy PLC | 0.6 | 1.01 | 0.68 |
| LAT1V.HE | Lassila & Tikanoja Oyj | 0.52 | 0.8 | 0.56 |
| QAIR.ST | Qleanair Holding AB | 0.93 | 0.35 | 0.2 |
| Low | High | |
| Unlevered beta | 0.24 | 0.4 |
| Relevered beta | 0.28 | 0.46 |
| Adjusted relevered beta | 0.52 | 0.64 |
SVIK.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 SVIK.ST:
cost_of_equity (6.30%) = risk_free_rate (2.75%) + equity_risk_premium (5.60%) * adjusted_beta (0.52) + 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.