DOME.ST WACC - Weighted Average Cost of Capital
The WACC of Dome Energy AB (publ) (DOME.ST) is 6.2%.
| Range | Selected | |
| Cost of equity | 7.1% - 9.9% | 8.5% |
| Tax rate | 21.4% - 21.6% | 21.5% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.5% - 6.9% | 6.2% |
| Category | Low | High |
| Long-term bond rate | 2.3% | 2.8% |
| Equity market risk premium | 4.7% | 5.7% |
| Adjusted beta | 1.02 | 1.14 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.1% | 9.9% |
| Tax rate | 21.4% | 21.6% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.5% | 6.9% |
| Selected WACC | 6.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| DOME.ST | Dome Energy AB (publ) | 1.03 | 0.74 | 0.41 |
| BOIL.L | Baron Oil PLC | 0 | -1.33 | -1.33 |
| BOR.L | Borders and Southern Petroleum PLC | 0.85 | 0.8 | 0.48 |
| CORO.L | Coro Energy Plc | 4.56 | -0.12 | -0.03 |
| EOG.L | Europa Oil & Gas (Holdings) PLC | 0 | 0.65 | 0.65 |
| NTOG.L | Nostra Terra Oil and Gas Company PLC | 3.09 | 1.7 | 0.5 |
| PPP.L | Pennpetro Energy PLC | 0.32 | -3.08 | -2.47 |
| PXEN.L | Prospex Energy PLC | 0.01 | 0.28 | 0.28 |
| TRP.L | Tower Resources PLC | 0 | -1.46 | -1.46 |
| ZOL.L | Zoltav Resources Inc | 1.03 | 0.48 | 0.27 |
| ZPHR.L | Zephyr Energy PLC | 0.33 | 0.26 | 0.2 |
| Low | High | |
| Unlevered beta | 0.2 | 0.28 |
| Relevered beta | 1.03 | 1.21 |
| Adjusted relevered beta | 1.02 | 1.14 |
DOME.ST'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 DOME.ST:
cost_of_equity (8.50%) = risk_free_rate (2.55%) + equity_risk_premium (5.20%) * adjusted_beta (1.02) + 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.