VEFAB.ST WACC - Weighted Average Cost of Capital

The WACC of Vef AB (publ) (VEFAB.ST) is 196.8%.

The Cost of Equity of Vef AB (publ) (VEFAB.ST) is 11.35%.

The Cost of Debt of Vef AB (publ) (VEFAB.ST) is 383.70%.

	Range	Selected
Cost of equity	9.40% - 13.30%	11.35%
Tax rate	0.10% - 0.40%	0.25%
Cost of debt	4.00% - 763.40%	383.70%
WACC	6.7% - 386.9%	196.8%

WACC

VEFAB.ST WACC calculation

Category	Low	High

Long-term bond rate	2.5%	3.0%
Equity market risk premium	5.1%	6.1%
Adjusted beta	1.36	1.6

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.40%	13.30%

Tax rate	0.10%	0.40%
Debt/Equity ratio	1	1
Cost of debt	4.00%	763.40%

After-tax WACC	6.7%	386.9%


Selected WACC	196.8%

VEFAB.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 VEFAB.ST:

cost_of_equity (11.35%) = risk_free_rate (2.75%) + equity_risk_premium (5.60%) * adjusted_beta (1.36) + 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.