HAGA.IC WACC - Weighted Average Cost of Capital
The WACC of Hagar hf (HAGA.IC) is 10.1%.
| Range | Selected | |
| Cost of equity | 10.1% - 12.5% | 11.3% |
| Tax rate | 18.2% - 19.0% | 18.6% |
| Cost of debt | 8.1% - 9.3% | 8.7% |
| WACC | 9.1% - 11.2% | 10.1% |
| Category | Low | High |
| Long-term bond rate | 7.1% | 7.6% |
| Equity market risk premium | 6.3% | 7.3% |
| Adjusted beta | 0.47 | 0.6 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.1% | 12.5% |
| Tax rate | 18.2% | 19.0% |
| Debt/Equity ratio | 0.37 | 0.37 |
| Cost of debt | 8.1% | 9.3% |
| After-tax WACC | 9.1% | 11.2% |
| Selected WACC | 10.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| HAGA.IC | Hagar hf | 0.37 | 0.61 | 0.47 |
| B4B.DE | Metro AG | 2.08 | 0.5 | 0.18 |
| CA.PA | Carrefour SA | 2.24 | 0.36 | 0.13 |
| CRFSA.IS | CarrefourSA Carrefour Sabanci Ticaret Merkezi AS | 0.42 | 1.24 | 0.93 |
| DIA.MC | Distribuidora Internacional de Alimentacion SA | 0.68 | 0.5 | 0.32 |
| FNTS.PA | Finatis SA | 130.82 | 1.22 | 0.01 |
| HAW.DE | Hawesko Holding AG | 0.83 | 0.07 | 0.04 |
| LNTA.L | Lenta Plc | 1.89 | 1.04 | 0.41 |
| OKEY.L | O'Key Group SA | 6.62 | 1.48 | 0.23 |
| TKM1T.TL | Tallinna Kaubamaja Grupp AS | 0.84 | -0.08 | -0.05 |
| Low | High | |
| Unlevered beta | 0.16 | 0.27 |
| Relevered beta | 0.21 | 0.4 |
| Adjusted relevered beta | 0.47 | 0.6 |
HAGA.IC'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 HAGA.IC:
cost_of_equity (11.30%) = risk_free_rate (7.35%) + equity_risk_premium (6.80%) * adjusted_beta (0.47) + 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.