BOUV.OL WACC - Weighted Average Cost of Capital
The WACC of Bouvet ASA (BOUV.OL) is 7.0%.
| Range | Selected | |
| Cost of equity | 5.8% - 8.4% | 7.1% |
| Tax rate | 21.6% - 22.1% | 21.85% |
| Cost of debt | 4.0% - 5.1% | 4.55% |
| WACC | 5.7% - 8.2% | 7.0% |
| Category | Low | High |
| Long-term bond rate | 3.3% | 3.8% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.48 | 0.66 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.8% | 8.4% |
| Tax rate | 21.6% | 22.1% |
| Debt/Equity ratio | 0.04 | 0.04 |
| Cost of debt | 4.0% | 5.1% |
| After-tax WACC | 5.7% | 8.2% |
| Selected WACC | 7.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BOUV.OL | Bouvet ASA | 0.04 | 0.25 | 0.24 |
| ASE.WA | Asseco South Eastern Europe SA | 0.05 | 0.44 | 0.42 |
| CMR.WA | Comarch SA | 0.08 | 0.14 | 0.13 |
| COLUM.CO | Columbus A/S | 0.16 | 0.06 | 0.05 |
| D6H.DE | Datagroup SE | 0.38 | 1.06 | 0.82 |
| INF.PA | Infotel SA | 0.11 | 0.2 | 0.19 |
| KNOW.ST | Knowit AB (publ) | 0.28 | 0.87 | 0.71 |
| NCC.L | NCC Group PLC | 0.23 | 0.75 | 0.63 |
| SHF.DE | SNP Schneider Neureither & Partner SE | 0.18 | 0.09 | 0.08 |
| SWP.PA | Sword Group SE | 0.19 | 0.66 | 0.58 |
| Low | High | |
| Unlevered beta | 0.22 | 0.48 |
| Relevered beta | 0.22 | 0.49 |
| Adjusted relevered beta | 0.48 | 0.66 |
BOUV.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 BOUV.OL:
cost_of_equity (7.10%) = risk_free_rate (3.55%) + equity_risk_premium (5.60%) * adjusted_beta (0.48) + 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.