Collector AB (COLL.ST) WACC Analysis

As of May 23, 2025, Collector AB (COLL.ST) carries a Weighted Average Cost of Capital (WACC) of 6.3%. WACC reflects the blended rate Collector AB must pay to both equity and debt holders.

Within that, the cost of equity is 6.3%, the cost of debt is 5.0%, and the effective tax rate is 21.1%.

Breakdown of WACC Components

• Long-term bond rate: 2.8% – 3.3%
• Equity market risk premium: 5.5% – 6.5%
• Adjusted beta: 0.63 – 0.71
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.46

What It Means for Investors

With a selected WACC of 6.3%, Collector AB must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.