AVTX.AS WACC - Weighted Average Cost of Capital
The WACC of Avantium NV (AVTX.AS) is 6.7%.
| Range | Selected | |
| Cost of equity | 5.2% - 7.0% | 6.1% |
| Tax rate | 25.0% - 25.3% | 25.15% |
| Cost of debt | 7.0% - 12.0% | 9.5% |
| WACC | 5.2% - 8.1% | 6.7% |
| Category | Low | High |
| Long-term bond rate | 2.6% | 3.1% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.42 | 0.47 |
| Additional risk adjustments | 0.5% | 1.0% |
| Cost of equity | 5.2% | 7.0% |
| Tax rate | 25.0% | 25.3% |
| Debt/Equity ratio | 1.48 | 1.48 |
| Cost of debt | 7.0% | 12.0% |
| After-tax WACC | 5.2% | 8.1% |
| Selected WACC | 6.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| AVTX.AS | Avantium NV | 1.48 | 2.13 | 1.01 |
| ALK.MI | Alkemy SpA | 0.39 | 0.02 | 0.02 |
| AQSG.L | Aquila Services Group PLC | 0.04 | 0.16 | 0.16 |
| CAPAC.ST | Capacent Holding AB (publ) | 0.04 | 1.3 | 1.26 |
| DOV1V.HE | Dovre Group Oyj | 0.48 | 0.09 | 0.07 |
| ELIX.L | Elixirr International PLC | 0.01 | 1.64 | 1.62 |
| IDEAS.IS | Idealist Danismanlik AS | 0 | 0.7 | 0.7 |
| KGH.L | Knights Group Holdings PLC | 0.6 | 0.1 | 0.07 |
| PENG B.ST | Projektengagemang Sweden AB | 1.08 | -0.04 | -0.02 |
| RBGP.L | RBG Holdings PLC | 32.67 | 1.6 | 0.06 |
| TRH1V.HE | Trainers' House Oyj | 0.14 | -0.33 | -0.3 |
| Low | High | |
| Unlevered beta | 0.07 | 0.16 |
| Relevered beta | 0.13 | 0.21 |
| Adjusted relevered beta | 0.42 | 0.47 |
AVTX.AS'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 AVTX.AS:
cost_of_equity (6.10%) = risk_free_rate (2.85%) + equity_risk_premium (5.60%) * adjusted_beta (0.42) + risk_adjustments (0.75%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.