AUSS.OL
Austevoll Seafood ASA
Price:  
98.80 
NOK
Volume:  
102,271.00
Norway | Food Products
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AUSS.OL WACC - Weighted Average Cost of Capital

The WACC of Austevoll Seafood ASA (AUSS.OL) is 6.7%.

The Cost of Equity of Austevoll Seafood ASA (AUSS.OL) is 8.90%.
The Cost of Debt of Austevoll Seafood ASA (AUSS.OL) is 5.00%.

Range Selected
Cost of equity 7.60% - 10.20% 8.90%
Tax rate 20.60% - 21.20% 20.90%
Cost of debt 4.80% - 5.20% 5.00%
WACC 5.9% - 7.5% 6.7%
WACC

AUSS.OL WACC calculation

Category Low High
Long-term bond rate 3.3% 3.8%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.83 0.97
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.60% 10.20%
Tax rate 20.60% 21.20%
Debt/Equity ratio 0.79 0.79
Cost of debt 4.80% 5.20%
After-tax WACC 5.9% 7.5%
Selected WACC 6.7%

AUSS.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 AUSS.OL:

cost_of_equity (8.90%) = risk_free_rate (3.55%) + equity_risk_premium (5.60%) * adjusted_beta (0.83) + 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.