LINK.OL WACC - Weighted Average Cost of Capital

The WACC of Link Mobility Group Holding ASA (LINK.OL) is 7.8%.

The Cost of Equity of Link Mobility Group Holding ASA (LINK.OL) is 8.95%.

The Cost of Debt of Link Mobility Group Holding ASA (LINK.OL) is 6.30%.

	Range	Selected
Cost of equity	7.90% - 10.00%	8.95%
Tax rate	21.10% - 23.40%	22.25%
Cost of debt	4.00% - 8.60%	6.30%
WACC	6.5% - 9.0%	7.8%

WACC

LINK.OL WACC calculation

Category	Low	High

Long-term bond rate	3.3%	3.8%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.89	0.93

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.90%	10.00%

Tax rate	21.10%	23.40%
Debt/Equity ratio	0.41	0.41
Cost of debt	4.00%	8.60%

After-tax WACC	6.5%	9.0%


Selected WACC	7.8%

LINK.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 LINK.OL:

cost_of_equity (8.95%) = risk_free_rate (3.55%) + equity_risk_premium (5.60%) * adjusted_beta (0.89) + 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.