BAKKA.OL WACC - Weighted Average Cost of Capital
The WACC of P/F Bakkafrost (BAKKA.OL) is 6.4%.
| Range | Selected | |
| Cost of equity | 6.1% - 7.8% | 6.95% |
| Tax rate | 19.0% - 22.0% | 20.5% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.8% - 7.1% | 6.4% |
| Category | Low | High |
| Long-term bond rate | 3.3% | 3.8% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.54 | 0.57 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.1% | 7.8% |
| Tax rate | 19.0% | 22.0% |
| Debt/Equity ratio | 0.2 | 0.2 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.8% | 7.1% |
| Selected WACC | 6.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BAKKA.OL | P/F Bakkafrost | 0.2 | 0.35 | 0.3 |
| ANDF.OL | Andfjord Salmon AS | 0.27 | 0.5 | 0.41 |
| ASA.OL | Atlantic Sapphire ASA | 2.01 | -0.29 | -0.11 |
| AVGR.L | AvangardCo Investments Public Ltd | 6.7 | 0.36 | 0.06 |
| BAIN.MC | Borges Agricultural & Industrial Nuts SA | 0.53 | 0.43 | 0.31 |
| BMK.L | Benchmark Holdings PLC | 0.44 | 1.06 | 0.79 |
| GSF.OL | Grieg Seafood ASA | 0.8 | 0.79 | 0.49 |
| MFD.WA | M Food SA | 3.6 | 1.14 | 0.29 |
| OVO.WA | Ovostar Union NV | 0.02 | -0.12 | -0.12 |
| SCST.ST | Scandi Standard AB (publ) | 0.34 | 0.3 | 0.24 |
| Low | High | |
| Unlevered beta | 0.27 | 0.3 |
| Relevered beta | 0.31 | 0.36 |
| Adjusted relevered beta | 0.54 | 0.57 |
BAKKA.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 BAKKA.OL:
cost_of_equity (6.95%) = risk_free_rate (3.55%) + equity_risk_premium (5.60%) * adjusted_beta (0.54) + 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.