ASA.OL
Atlantic Sapphire ASA
Price:  
5.90 
NOK
Volume:  
180,760.00
Norway | Food Products
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

ASA.OL WACC - Weighted Average Cost of Capital

The WACC of Atlantic Sapphire ASA (ASA.OL) is 6.4%.

The Cost of Equity of Atlantic Sapphire ASA (ASA.OL) is 6.80%.
The Cost of Debt of Atlantic Sapphire ASA (ASA.OL) is 7.95%.

Range Selected
Cost of equity 5.50% - 8.10% 6.80%
Tax rate 22.00% - 22.00% 22.00%
Cost of debt 7.00% - 8.90% 7.95%
WACC 5.5% - 7.3% 6.4%
WACC

ASA.OL WACC calculation

Category Low High
Long-term bond rate 3.3% 3.8%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.43 0.62
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.50% 8.10%
Tax rate 22.00% 22.00%
Debt/Equity ratio 2.16 2.16
Cost of debt 7.00% 8.90%
After-tax WACC 5.5% 7.3%
Selected WACC 6.4%

ASA.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 ASA.OL:

cost_of_equity (6.80%) = risk_free_rate (3.55%) + equity_risk_premium (5.60%) * adjusted_beta (0.43) + 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.