5PG.OL WACC - Weighted Average Cost of Capital
The WACC of 5Th Planet Games A/S (5PG.OL) is 5.0%.
| Range | Selected | |
| Cost of equity | 4.2% - 7.5% | 5.85% |
| Tax rate | 0.1% - 0.6% | 0.35% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.1% - 6.0% | 5.0% |
| Category | Low | High |
| Long-term bond rate | 3.3% | 3.8% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | -0.03 | 0.35 |
| Additional risk adjustments | 1.0% | 1.5% |
| Cost of equity | 4.2% | 7.5% |
| Tax rate | 0.1% | 0.6% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.1% | 6.0% |
| Selected WACC | 5.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 5PG.OL | 5Th Planet Games A/S | 1.17 | 0.93 | 0.43 |
| CFG.WA | Creativeforge Games SA | 0 | 0 | 0 |
| CHP.WA | Cherrypick Games SA | 0.07 | -0.28 | -0.26 |
| FOR.WA | Forever Entertainment SA | 0.01 | 0.05 | 0.05 |
| GCOR.ST | Gaming Corps AB | 0.02 | -0.32 | -0.32 |
| GOP.WA | Games Operators SA | 0 | 0.65 | 0.65 |
| MOS.L | Mobile Streams PLC | 0 | -1.8 | -1.8 |
| MOV.WA | Movie Games SA | 0.01 | -0.28 | -0.28 |
| NITRO.ST | Nitro Games Oyj | 0.9 | 0.17 | 0.09 |
| SOK.WA | Sonka SA | 0.02 | 0.12 | 0.11 |
| THD.WA | Dust SA | 0.06 | -0.32 | -0.3 |
| Low | High | |
| Unlevered beta | -0.26 | 0.05 |
| Relevered beta | -0.54 | 0.03 |
| Adjusted relevered beta | -0.03 | 0.35 |
5PG.OL'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 5PG.OL:
cost_of_equity (5.85%) = risk_free_rate (3.55%) + equity_risk_premium (5.60%) * adjusted_beta (-0.03) + risk_adjustments (1.25%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.