ENJSA.IS WACC - Weighted Average Cost of Capital

The WACC of Enerjisa Enerji AS (ENJSA.IS) is 27.4%.

The Cost of Equity of Enerjisa Enerji AS (ENJSA.IS) is 33.30%.

The Cost of Debt of Enerjisa Enerji AS (ENJSA.IS) is 22.90%.

	Range	Selected
Cost of equity	32.00% - 34.60%	33.30%
Tax rate	24.60% - 26.10%	25.35%
Cost of debt	18.50% - 27.30%	22.90%
WACC	25.5% - 29.4%	27.4%

WACC

ENJSA.IS WACC calculation

Category	Low	High

Long-term bond rate	21.4%	21.9%
Equity market risk premium	10.2%	11.2%
Adjusted beta	1.05	1.09

Additional risk adjustments	0.0%	0.5%
Cost of equity	32.00%	34.60%

Tax rate	24.60%	26.10%
Debt/Equity ratio	0.57	0.57
Cost of debt	18.50%	27.30%

After-tax WACC	25.5%	29.4%


Selected WACC	27.4%

ENJSA.IS'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 ENJSA.IS:

cost_of_equity (33.30%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (1.05) + 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.