FAST.AS WACC - Weighted Average Cost of Capital
The WACC of Fastned BV (FAST.AS) is 6.5%.
| Range | Selected | |
| Cost of equity | 5.8% - 8.5% | 7.15% |
| Tax rate | 25.0% - 25.3% | 25.15% |
| Cost of debt | 7.0% - 7.5% | 7.25% |
| WACC | 5.6% - 7.3% | 6.5% |
| Category | Low | High |
| Long-term bond rate | 2.6% | 3.1% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.64 | 0.81 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.8% | 8.5% |
| Tax rate | 25.0% | 25.3% |
| Debt/Equity ratio | 0.66 | 0.66 |
| Cost of debt | 7.0% | 7.5% |
| After-tax WACC | 5.6% | 7.3% |
| Selected WACC | 6.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| FAST.AS | Fastned BV | 0.66 | 0.62 | 0.42 |
| AYEN.IS | Ayen Enerji AS | 1.23 | 1.5 | 0.78 |
| DGB.AS | DGB Group NV | 0.92 | 0.99 | 0.59 |
| ENEFI.BD | ENEFI Vagyonkezelo Nyrt | 0 | 0.58 | 0.57 |
| ENG.WA | Energa SA | 2.49 | 0.32 | 0.11 |
| HREN.SW | Romande Energie Holding SA | 0.09 | 0.16 | 0.15 |
| JEL.L | Jersey Electricity PLC | 0.26 | 0.22 | 0.19 |
| LGD1L.VS | Litgrid AB | 0.08 | 0.42 | 0.39 |
| ODAS.IS | ODAS Elektrik Uretim Sanayi Ticaret AS | 1.06 | 1.56 | 0.87 |
| OPG.L | OPG Power Ventures PLC | 1.49 | -0.55 | -0.26 |
| Low | High | |
| Unlevered beta | 0.31 | 0.48 |
| Relevered beta | 0.46 | 0.72 |
| Adjusted relevered beta | 0.64 | 0.81 |
FAST.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 FAST.AS:
cost_of_equity (7.15%) = risk_free_rate (2.85%) + equity_risk_premium (5.60%) * adjusted_beta (0.64) + 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.