RBREW.CO WACC - Weighted Average Cost of Capital

The WACC of Royal Unibrew A/S (RBREW.CO) is 6.2%.

The Cost of Equity of Royal Unibrew A/S (RBREW.CO) is 6.85%.

The Cost of Debt of Royal Unibrew A/S (RBREW.CO) is 4.25%.

	Range	Selected
Cost of equity	5.80% - 7.90%	6.85%
Tax rate	20.90% - 21.30%	21.10%
Cost of debt	4.00% - 4.50%	4.25%
WACC	5.3% - 7.1%	6.2%

WACC

RBREW.CO WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.6	0.68

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.80%	7.90%

Tax rate	20.90%	21.30%
Debt/Equity ratio	0.22	0.22
Cost of debt	4.00%	4.50%

After-tax WACC	5.3%	7.1%


Selected WACC	6.2%

RBREW.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 RBREW.CO:

cost_of_equity (6.85%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.6) + 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.