WISE.ST WACC - Weighted Average Cost of Capital
The WACC of Wise Group AB (WISE.ST) is 5.4%.
| Range | Selected | |
| Cost of equity | 4.6% - 6.8% | 5.7% |
| Tax rate | 16.1% - 22.1% | 19.1% |
| Cost of debt | 4.4% - 7.0% | 5.7% |
| WACC | 4.3% - 6.4% | 5.4% |
| Category | Low | High |
| Long-term bond rate | 2.5% | 3.0% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.42 | 0.55 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.6% | 6.8% |
| Tax rate | 16.1% | 22.1% |
| Debt/Equity ratio | 0.46 | 0.46 |
| Cost of debt | 4.4% | 7.0% |
| After-tax WACC | 4.3% | 6.4% |
| Selected WACC | 5.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| WISE.ST | Wise Group AB | 0.46 | 0.45 | 0.32 |
| ALK.MI | Alkemy SpA | 0.39 | 0.02 | 0.02 |
| COM.MC | Catenon SA | 0.05 | 0.97 | 0.93 |
| DOV1V.HE | Dovre Group Oyj | 0.48 | 0.09 | 0.06 |
| ESENSE.HE | Enersense International Oyj | 1.24 | 0.49 | 0.24 |
| MIND.L | Mind Gym PLC | 0.1 | 0.82 | 0.76 |
| MORE.AS | Morefield Group NV | 0.57 | 0.17 | 0.11 |
| PENG B.ST | Projektengagemang Sweden AB | 1.08 | -0.04 | -0.02 |
| RBGP.L | RBG Holdings PLC | 32.67 | 1.6 | 0.06 |
| ZAL.OL | Zalaris ASA | 0.29 | 0.28 | 0.23 |
| Low | High | |
| Unlevered beta | 0.09 | 0.23 |
| Relevered beta | 0.13 | 0.33 |
| Adjusted relevered beta | 0.42 | 0.55 |
WISE.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 WISE.ST:
cost_of_equity (5.70%) = risk_free_rate (2.75%) + equity_risk_premium (5.60%) * adjusted_beta (0.42) + 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.