ODF.OL
Odfjell SE
Price:  
114.80 
NOK
Volume:  
50,989.00
Norway | Marine
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ODF.OL WACC - Weighted Average Cost of Capital

The WACC of Odfjell SE (ODF.OL) is 8.6%.

The Cost of Equity of Odfjell SE (ODF.OL) is 13.00%.
The Cost of Debt of Odfjell SE (ODF.OL) is 5.45%.

Range Selected
Cost of equity 11.50% - 14.50% 13.00%
Tax rate 2.70% - 6.30% 4.50%
Cost of debt 4.30% - 6.60% 5.45%
WACC 7.4% - 9.9% 8.6%
WACC

ODF.OL WACC calculation

Category Low High
Long-term bond rate 3.3% 3.8%
Equity market risk premium 5.1% 6.1%
Adjusted beta 1.61 1.67
Additional risk adjustments 0.0% 0.5%
Cost of equity 11.50% 14.50%
Tax rate 2.70% 6.30%
Debt/Equity ratio 1.28 1.28
Cost of debt 4.30% 6.60%
After-tax WACC 7.4% 9.9%
Selected WACC 8.6%

ODF.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 ODF.OL:

cost_of_equity (13.00%) = risk_free_rate (3.55%) + equity_risk_premium (5.60%) * adjusted_beta (1.61) + 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.