ROV.CO WACC - Weighted Average Cost of Capital
The WACC of Rovsing A/S (ROV.CO) is 7.7%.
| Range | Selected | |
| Cost of equity | 6.0% - 9.4% | 7.7% |
| Tax rate | 9.0% - 15.7% | 12.35% |
| Cost of debt | 7.0% - 10.7% | 8.85% |
| WACC | 6.1% - 9.3% | 7.7% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.63 | 0.92 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.0% | 9.4% |
| Tax rate | 9.0% | 15.7% |
| Debt/Equity ratio | 0.35 | 0.35 |
| Cost of debt | 7.0% | 10.7% |
| After-tax WACC | 6.1% | 9.3% |
| Selected WACC | 7.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ROV.CO | Rovsing A/S | 0.35 | -0.07 | -0.06 |
| AAC.ST | AAC Clyde Space AB | 0.01 | 0.69 | 0.68 |
| ALDR.PA | Delta Drone SA | 5.19 | -1.52 | -0.27 |
| CTT.ST | CTT Systems AB | 0.02 | 1.26 | 1.24 |
| GOMX.ST | GomSpace Group AB | 0.08 | 0.54 | 0.5 |
| LBW.WA | Lubawa SA | 0.01 | 0.68 | 0.67 |
| M0Y.DE | Mynaric AG | 0.06 | 1.23 | 1.17 |
| PEN.L | Pennant International Group PLC | 0.3 | 0.14 | 0.11 |
| RMS.L | Remote Monitored Systems PLC | 0 | -0.9 | -0.9 |
| VEL.L | Velocity Composites PLC | 0.22 | 0.82 | 0.69 |
| Low | High | |
| Unlevered beta | 0.34 | 0.67 |
| Relevered beta | 0.45 | 0.88 |
| Adjusted relevered beta | 0.63 | 0.92 |
ROV.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 ROV.CO:
cost_of_equity (7.70%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.63) + 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.