Bong AB (BONG.ST) WACC Analysis

As of May 24, 2025, Bong AB (BONG.ST) carries a Weighted Average Cost of Capital (WACC) of 7.8%. WACC reflects the blended rate Bong AB must pay to both equity and debt holders.

Within that, the cost of equity is 10.1%, the cost of debt is 6.1%, and the effective tax rate is 20.6%.

Breakdown of WACC Components

• Long-term bond rate: 2.5% – 3.0%
• Equity market risk premium: 5.1% – 6.1%
• Adjusted beta: 1.49 – 2.33
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 2.69

What It Means for Investors

With a selected WACC of 7.8%, Bong AB must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.