SWMA.ST WACC - Weighted Average Cost of Capital
The WACC of Swedish Match AB (SWMA.ST) is 5.8%.
| Range | Selected | |
| Cost of equity | 5.1% - 6.9% | 6% |
| Tax rate | 21.8% - 22.3% | 22.05% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.0% - 6.6% | 5.8% |
| Category | Low | High |
| Long-term bond rate | 2.5% | 3.0% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.51 | 0.55 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.1% | 6.9% |
| Tax rate | 21.8% | 22.3% |
| Debt/Equity ratio | 0.09 | 0.09 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.0% | 6.6% |
| Selected WACC | 5.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SWMA.ST | Swedish Match AB | 0.09 | 0.27 | 0.25 |
| BATS.L | British American Tobacco PLC | 0.51 | 0.41 | 0.29 |
| IMB.L | Imperial Brands PLC | 0.36 | 0.43 | 0.33 |
| KARE.AT | Karelia Tobacco Company Inc SA | 0 | 0.16 | 0.16 |
| STG.CO | Scandinavian Tobacco Group A/S | 0.64 | 0.2 | 0.13 |
| TABAK.PR | Philip Morris CR as | 0.01 | 0.38 | 0.37 |
| RLX | RLX Technology Inc | 0.02 | 0.32 | 0.32 |
| TPB | Turning Point Brands Inc | 0.19 | 0.72 | 0.63 |
| UVV | Universal Corp | 0.72 | 0.38 | 0.24 |
| VGR | Vector Group Ltd | 0.58 | 0.19 | 0.13 |
| Low | High | |
| Unlevered beta | 0.25 | 0.3 |
| Relevered beta | 0.27 | 0.33 |
| Adjusted relevered beta | 0.51 | 0.55 |
SWMA.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 SWMA.ST:
cost_of_equity (6.00%) = risk_free_rate (2.75%) + equity_risk_premium (5.60%) * adjusted_beta (0.51) + 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.