Telia Company AB (TELIA.ST) WACC Analysis

As of June 10, 2025, Telia Company AB (TELIA.ST) carries a Weighted Average Cost of Capital (WACC) of 5.6%. WACC reflects the blended rate Telia Company AB must pay to both equity and debt holders.

Within that, the cost of equity is 5.1%, the cost of debt is 5.0%, and the effective tax rate is 9.5%.

Breakdown of WACC Components

• Long-term bond rate: 2.5% – 3.0%
• Equity market risk premium: 5.1% – 6.1%
• Adjusted beta: 0.51 – 0.65
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.64

What It Means for Investors

With a selected WACC of 5.6%, Telia Company AB must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.