FKRFT.OL WACC - Weighted Average Cost of Capital
The WACC of Fjordkraft Holding ASA (FKRFT.OL) is 6.2%.
| Range | Selected | |
| Cost of equity | 6.0% - 7.9% | 6.95% |
| Tax rate | 23.3% - 23.8% | 23.55% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.4% - 7.1% | 6.2% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 4.7% | 5.7% |
| Adjusted beta | 0.61 | 0.66 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.0% | 7.9% |
| Tax rate | 23.3% | 23.8% |
| Debt/Equity ratio | 0.23 | 0.23 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.4% | 7.1% |
| Selected WACC | 6.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| FKRFT.OL | Fjordkraft Holding ASA | 0.23 | 0.31 | 0.26 |
| AYEN.IS | Ayen Enerji AS | 1.23 | 1.5 | 0.77 |
| ELEC.PA | Electricite de Strasbourg SA | 0.02 | 0.26 | 0.25 |
| HREN.SW | Romande Energie Holding SA | 0.09 | 0.16 | 0.15 |
| IRL.WA | Inter RAO Lietuva AB | 0.01 | 0 | 0 |
| 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 | 0.86 |
| OPG.L | OPG Power Ventures PLC | 1.49 | -0.55 | -0.26 |
| ZEP.WA | Zespol Elektrowni Patnow Adamow Konin SA | 0.04 | 0.69 | 0.67 |
| Low | High | |
| Unlevered beta | 0.23 | 0.31 |
| Relevered beta | 0.42 | 0.49 |
| Adjusted relevered beta | 0.61 | 0.66 |
FKRFT.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 FKRFT.OL:
cost_of_equity (6.95%) = risk_free_rate (3.35%) + equity_risk_premium (5.20%) * adjusted_beta (0.61) + 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.