AMG1L.VS WACC - Weighted Average Cost of Capital
The WACC of Amber Grid AB (AMG1L.VS) is 6.5%.
| Range | Selected | |
| Cost of equity | 6.4% - 8.8% | 7.6% |
| Tax rate | 10.1% - 13.4% | 11.75% |
| Cost of debt | 4.0% - 4.7% | 4.35% |
| WACC | 5.6% - 7.4% | 6.5% |
| Category | Low | High |
| Long-term bond rate | 3.4% | 3.9% |
| Equity market risk premium | 6.3% | 7.3% |
| Adjusted beta | 0.47 | 0.59 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.4% | 8.8% |
| Tax rate | 10.1% | 13.4% |
| Debt/Equity ratio | 0.41 | 0.41 |
| Cost of debt | 4.0% | 4.7% |
| After-tax WACC | 5.6% | 7.4% |
| Selected WACC | 6.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| AMG1L.VS | Amber Grid AB | 0.41 | -0.02 | -0.02 |
| ACS.MI | Acsm Agam SpA | 0.64 | 0.49 | 0.31 |
| ASC.MI | Ascopiave SpA | 0.61 | 0.12 | 0.08 |
| AYGAZ.IS | Aygaz AS | 0.29 | 0.95 | 0.76 |
| FCRM.L | Fulcrum Utility Services Ltd | 4.54 | 0.76 | 0.15 |
| NTGY.MC | Naturgy Energy Group SA | 0.69 | 0.42 | 0.27 |
| TSG.WA | Tesgas SA | 0.4 | 0.67 | 0.5 |
| CPK | Chesapeake Utilities Corp | 0.53 | 0.05 | 0.04 |
| NWN | Northwest Natural Holding Co | 1.17 | 0.29 | 0.14 |
| RGCO | RGC Resources Inc | 0.62 | 0.6 | 0.39 |
| Low | High | |
| Unlevered beta | 0.15 | 0.28 |
| Relevered beta | 0.21 | 0.39 |
| Adjusted relevered beta | 0.47 | 0.59 |
AMG1L.VS'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 AMG1L.VS:
cost_of_equity (7.60%) = risk_free_rate (3.65%) + equity_risk_premium (6.80%) * adjusted_beta (0.47) + 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.