XSPRAY.ST
XSpray Pharma AB (publ)
Price:  
47.7 
SEK
Volume:  
17,347
Sweden | Biotechnology

XSPRAY.ST WACC - Weighted Average Cost of Capital

The WACC of XSpray Pharma AB (publ) (XSPRAY.ST) is 6.4%.

The Cost of Equity of XSpray Pharma AB (publ) (XSPRAY.ST) is 6.55%.
The Cost of Debt of XSpray Pharma AB (publ) (XSPRAY.ST) is 5%.

RangeSelected
Cost of equity5.0% - 8.1%6.55%
Tax rate20.6% - 20.9%20.75%
Cost of debt5.0% - 5.0%5%
WACC4.9% - 7.9%6.4%
WACC

XSPRAY.ST WACC calculation

CategoryLowHigh
Long-term bond rate2.5%3.0%
Equity market risk premium5.1%6.1%
Adjusted beta0.480.76
Additional risk adjustments0.0%0.5%
Cost of equity5.0%8.1%
Tax rate20.6%20.9%
Debt/Equity ratio
0.070.07
Cost of debt5.0%5.0%
After-tax WACC4.9%7.9%
Selected WACC6.4%

XSPRAY.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 XSPRAY.ST:

cost_of_equity (6.55%) = risk_free_rate (2.75%) + equity_risk_premium (5.60%) * adjusted_beta (0.48) + 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.