ARCUS.OL
Arcus ASA
Price:  
50.00 
NOK
Volume:  
247,774.00
Norway | Beverages
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ARCUS.OL WACC - Weighted Average Cost of Capital

The WACC of Arcus ASA (ARCUS.OL) is 5.6%.

The Cost of Equity of Arcus ASA (ARCUS.OL) is 6.80%.
The Cost of Debt of Arcus ASA (ARCUS.OL) is 4.95%.

Range Selected
Cost of equity 5.90% - 7.70% 6.80%
Tax rate 26.50% - 27.20% 26.85%
Cost of debt 4.40% - 5.50% 4.95%
WACC 4.9% - 6.3% 5.6%
WACC

ARCUS.OL WACC calculation

Category Low High
Long-term bond rate 3.1% 3.6%
Equity market risk premium 4.7% 5.7%
Adjusted beta 0.61 0.63
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.90% 7.70%
Tax rate 26.50% 27.20%
Debt/Equity ratio 0.62 0.62
Cost of debt 4.40% 5.50%
After-tax WACC 4.9% 6.3%
Selected WACC 5.6%

ARCUS.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 ARCUS.OL:

cost_of_equity (6.80%) = risk_free_rate (3.35%) + equity_risk_premium (5.20%) * adjusted_beta (0.61) + 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.