KBHL.CO WACC - Weighted Average Cost of Capital

The WACC of Copenhagen Airports A/S (KBHL.CO) is 6.2%.

The Cost of Equity of Copenhagen Airports A/S (KBHL.CO) is 6.50%.

The Cost of Debt of Copenhagen Airports A/S (KBHL.CO) is 5.50%.

	Range	Selected
Cost of equity	5.20% - 7.80%	6.50%
Tax rate	22.40% - 22.60%	22.50%
Cost of debt	4.00% - 7.00%	5.50%
WACC	4.9% - 7.4%	6.2%

WACC

KBHL.CO WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.49	0.67

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.20%	7.80%

Tax rate	22.40%	22.60%
Debt/Equity ratio	0.18	0.18
Cost of debt	4.00%	7.00%

After-tax WACC	4.9%	7.4%


Selected WACC	6.2%

KBHL.CO'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 KBHL.CO:

cost_of_equity (6.50%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.49) + 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.