AAK.ST WACC - Weighted Average Cost of Capital
The WACC of AAK AB (publ) (AAK.ST) is 5.8%.
| Range | Selected | |
| Cost of equity | 4.8% - 7.1% | 5.95% |
| Tax rate | 23.5% - 24.1% | 23.8% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.7% - 6.9% | 5.8% |
| Category | Low | High |
| Long-term bond rate | 2.5% | 3.0% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.45 | 0.58 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.8% | 7.1% |
| Tax rate | 23.5% | 24.1% |
| Debt/Equity ratio | 0.06 | 0.06 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.7% | 6.9% |
| Selected WACC | 5.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| AAK.ST | AAK AB (publ) | 0.06 | 0.09 | 0.09 |
| AGR.VI | Agrana Beteiligungs AG | 1.02 | 0.41 | 0.23 |
| AUSS.OL | Austevoll Seafood ASA | 0.79 | 0.6 | 0.37 |
| EBRO.MC | Ebro Foods SA | 0.19 | 0.11 | 0.1 |
| EMMN.SW | Emmi AG | 0.31 | 0.44 | 0.35 |
| FBEL.PA | BEL SA | 0.31 | 0.51 | 0.42 |
| LSG.OL | Leroy Seafood Group ASA | 0.49 | 0.72 | 0.52 |
| SCHO.CO | Schouw & Co A/S | 0.44 | 0.11 | 0.08 |
| TATE.L | Tate & Lyle PLC | 0.24 | 1.1 | 0.93 |
| UNBL.PA | Unibel SA | 0.58 | 0.01 | 0 |
| Low | High | |
| Unlevered beta | 0.18 | 0.36 |
| Relevered beta | 0.18 | 0.37 |
| Adjusted relevered beta | 0.45 | 0.58 |
AAK.ST'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 AAK.ST:
cost_of_equity (5.95%) = risk_free_rate (2.75%) + equity_risk_premium (5.60%) * adjusted_beta (0.45) + risk_adjustments (0.25%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.