The WACC of Reginn hf (REGINN.IC) is 10.2%.
| Range | Selected | |
| Cost of equity | 9.50% - 12.80% | 11.15% |
| Tax rate | 20.30% - 20.50% | 20.40% |
| Cost of debt | 4.00% - 20.80% | 12.40% |
| WACC | 4.9% - 15.5% | 10.2% |
| Category | Low | High |
| Long-term bond rate | 6.8% | 7.3% |
| Equity market risk premium | 6.3% | 7.3% |
| Adjusted beta | 0.42 | 0.69 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.50% | 12.80% |
| Tax rate | 20.30% | 20.50% |
| Debt/Equity ratio | 2.6 | 2.6 |
| Cost of debt | 4.00% | 20.80% |
| After-tax WACC | 4.9% | 15.5% |
| Selected WACC | 10.2% | |
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 REGINN.IC:
cost_of_equity (11.15%) = risk_free_rate (7.05%) + equity_risk_premium (6.80%) * adjusted_beta (0.42) + 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.