BHG Group AB (BHG.ST) WACC Analysis

As of May 22, 2025, BHG Group AB (BHG.ST) carries a Weighted Average Cost of Capital (WACC) of 7.5%. WACC reflects the blended rate BHG Group AB must pay to both equity and debt holders.

Within that, the cost of equity is 8.1%, the cost of debt is 4.0%, and the effective tax rate is 14.6%.

Breakdown of WACC Components

• Long-term bond rate: 2.5% – 3.0%
• Equity market risk premium: 5.1% – 6.1%
• Adjusted beta: 1.09 – 1.15
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.58

What It Means for Investors

With a selected WACC of 7.5%, BHG Group AB must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.