ROV.CO
Rovsing A/S
Price:  
82.00 
DKK
Volume:  
803.00
Denmark | Aerospace & Defense
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

ROV.CO WACC - Weighted Average Cost of Capital

The WACC of Rovsing A/S (ROV.CO) is 7.1%.

The Cost of Equity of Rovsing A/S (ROV.CO) is 6.95%.
The Cost of Debt of Rovsing A/S (ROV.CO) is 8.85%.

Range Selected
Cost of equity 5.60% - 8.30% 6.95%
Tax rate 9.00% - 15.70% 12.35%
Cost of debt 7.00% - 10.70% 8.85%
WACC 5.7% - 8.4% 7.1%
WACC

ROV.CO WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.55 0.75
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.60% 8.30%
Tax rate 9.00% 15.70%
Debt/Equity ratio 0.2 0.2
Cost of debt 7.00% 10.70%
After-tax WACC 5.7% 8.4%
Selected WACC 7.1%

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 (6.95%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.55) + 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.