HELG.OL WACC - Weighted Average Cost of Capital
The WACC of Sparebank 1 Helgeland (HELG.OL) is 4.8%.
| Range | Selected | |
| Cost of equity | 5.4% - 7.8% | 6.6% |
| Tax rate | 21.8% - 22.7% | 22.25% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.4% - 5.3% | 4.8% |
| Category | Low | High |
| Long-term bond rate | 3.3% | 3.8% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.4 | 0.56 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.4% | 7.8% |
| Tax rate | 21.8% | 22.7% |
| Debt/Equity ratio | 1.82 | 1.82 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.4% | 5.3% |
| Selected WACC | 4.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| HELG.OL | Sparebank 1 Helgeland | 1.82 | 0.65 | 0.27 |
| CRLA.PA | Caisse Regionale de Credit Agricole Mutuel du Languedoc | 0.91 | 0.7 | 0.41 |
| DAB.CO | Danske Andelskassers Bank A/S | 1.05 | 0.08 | 0.04 |
| GLKBN.SW | Glarner Kantonalbank | 5.51 | 0.13 | 0.02 |
| LINN.SW | Bank Linth LLB AG | 3.03 | -0.13 | -0.04 |
| SADG.OL | Sandnes Sparebank | 5.31 | 0.06 | 0.01 |
| SBVG.OL | Sparebank 1 BV | 2.67 | 0.61 | 0.2 |
| SOAG.OL | Sparebank 1 Ostfold Akershus | 0.94 | 0.19 | 0.11 |
| TOTG.OL | Totens Sparebank | 4.87 | 0.22 | 0.05 |
| VVL.OL | Voss Veksel og Landmandsbank ASA | 1.27 | 0.56 | 0.28 |
| Low | High | |
| Unlevered beta | 0.04 | 0.15 |
| Relevered beta | 0.1 | 0.34 |
| Adjusted relevered beta | 0.4 | 0.56 |
HELG.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 HELG.OL:
cost_of_equity (6.60%) = risk_free_rate (3.55%) + equity_risk_premium (5.60%) * adjusted_beta (0.4) + 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.