TRG.ST
Transcendent Group AB (publ)
Price:  
36 
SEK
Volume:  
4,344
Sweden | Professional, Scientific, and Technical Services

TRG.ST WACC - Weighted Average Cost of Capital

The WACC of Transcendent Group AB (publ) (TRG.ST) is 6.8%.

The Cost of Equity of Transcendent Group AB (publ) (TRG.ST) is 7.15%.
The Cost of Debt of Transcendent Group AB (publ) (TRG.ST) is 5%.

RangeSelected
Cost of equity5.6% - 8.7%7.15%
Tax rate23.5% - 34.5%29%
Cost of debt5.0% - 5.0%5%
WACC5.5% - 8.2%6.8%
WACC

TRG.ST WACC calculation

CategoryLowHigh
Long-term bond rate2.3%2.8%
Equity market risk premium4.7%5.7%
Adjusted beta0.70.94
Additional risk adjustments0.0%0.5%
Cost of equity5.6%8.7%
Tax rate23.5%34.5%
Debt/Equity ratio
0.090.09
Cost of debt5.0%5.0%
After-tax WACC5.5%8.2%
Selected WACC6.8%

TRG.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 TRG.ST:

cost_of_equity (7.15%) = risk_free_rate (2.55%) + equity_risk_premium (5.20%) * adjusted_beta (0.7) + 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.