GYL.OL WACC - Weighted Average Cost of Capital
The WACC of Gyldendal ASA (GYL.OL) is 5.5%.
| Range | Selected | |
| Cost of equity | 5.2% - 7.0% | 6.1% |
| Tax rate | 14.9% - 18.2% | 16.55% |
| Cost of debt | 4.0% - 6.5% | 5.25% |
| WACC | 4.6% - 6.4% | 5.5% |
| Category | Low | High |
| Long-term bond rate | 3.3% | 3.8% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.37 | 0.44 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.2% | 7.0% |
| Tax rate | 14.9% | 18.2% |
| Debt/Equity ratio | 0.57 | 0.57 |
| Cost of debt | 4.0% | 6.5% |
| After-tax WACC | 4.6% | 6.4% |
| Selected WACC | 5.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| GYL.OL | Gyldendal ASA | 0.57 | 0.57 | 0.39 |
| ALEMV.PA | Emova Group SA | 3.27 | 0.04 | 0.01 |
| ANG.L | Angling Direct PLC | 0.39 | -0.19 | -0.15 |
| G4M.L | Gear4music Holdings PLC | 0.73 | 1.57 | 0.98 |
| KI.MI | Ki Group Holding SpA | 110.57 | -0.91 | -0.01 |
| LYKO A.ST | Lyko Group AB (publ) | 0.65 | 0.89 | 0.58 |
| MUSTI.HE | Musti Group Oyj | 0.29 | 0.08 | 0.06 |
| NTH.MC | Naturhouse Health SA | 0.03 | 0.17 | 0.16 |
| SCHO.L | Scholium Group PLC | 0.38 | -0.06 | -0.05 |
| WRKS.L | Works co uk PLC | 4.66 | 0.38 | 0.08 |
| Low | High | |
| Unlevered beta | 0.04 | 0.11 |
| Relevered beta | 0.06 | 0.16 |
| Adjusted relevered beta | 0.37 | 0.44 |
GYL.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 GYL.OL:
cost_of_equity (6.10%) = risk_free_rate (3.55%) + equity_risk_premium (5.60%) * adjusted_beta (0.37) + 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.