TRAD.ST
TradeDoubler AB
Price:  
5.88 
SEK
Volume:  
16,729.00
Sweden | Media
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TRAD.ST WACC - Weighted Average Cost of Capital

The WACC of TradeDoubler AB (TRAD.ST) is 5.4%.

The Cost of Equity of TradeDoubler AB (TRAD.ST) is 5.95%.
The Cost of Debt of TradeDoubler AB (TRAD.ST) is 5.00%.

Range Selected
Cost of equity 5.00% - 6.90% 5.95%
Tax rate 26.60% - 39.50% 33.05%
Cost of debt 5.00% - 5.00% 5.00%
WACC 4.7% - 6.1% 5.4%
WACC

TRAD.ST WACC calculation

Category Low High
Long-term bond rate 2.5% 3.0%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.38 0.47
Additional risk adjustments 0.5% 1.0%
Cost of equity 5.00% 6.90%
Tax rate 26.60% 39.50%
Debt/Equity ratio 0.27 0.27
Cost of debt 5.00% 5.00%
After-tax WACC 4.7% 6.1%
Selected WACC 5.4%

TRAD.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 TRAD.ST:

cost_of_equity (5.95%) = risk_free_rate (2.75%) + equity_risk_premium (5.60%) * adjusted_beta (0.38) + risk_adjustments (0.75%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.