SCATC.OL WACC - Weighted Average Cost of Capital
The WACC of Scatec ASA (SCATC.OL) is 10.4%.
| Range | Selected | |
| Cost of equity | 7.0% - 9.7% | 8.35% |
| Tax rate | 11.8% - 23.2% | 17.5% |
| Cost of debt | 8.0% - 20.3% | 14.15% |
| WACC | 7.0% - 13.7% | 10.4% |
| Category | Low | High |
| Long-term bond rate | 3.3% | 3.8% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.71 | 0.87 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.0% | 9.7% |
| Tax rate | 11.8% | 23.2% |
| Debt/Equity ratio | 2.09 | 2.09 |
| Cost of debt | 8.0% | 20.3% |
| After-tax WACC | 7.0% | 13.7% |
| Selected WACC | 10.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SCATC.OL | Scatec ASA | 2.09 | 0.87 | 0.31 |
| 01C.WA | 01Cyberaton SA | 0.21 | 0.66 | 0.56 |
| ECV.DE | Encavis AG | 0.71 | 0.02 | 0.01 |
| FKR.MI | Falck Renewables SpA | 0.37 | 0.6 | 0.45 |
| GRE.MC | Grenergy Renovables SA | 0.59 | 0.31 | 0.2 |
| IB.MI | Iniziative Bresciane Inbre SpA | 1.49 | 0.01 | 0.01 |
| NATEN.IS | Naturel Yenilenebilir Enerji Ticaret AS | 0.25 | 1.02 | 0.84 |
| SLR.MC | Solaria Energia y Medio Ambiente SA | 1.38 | 0.35 | 0.16 |
| UKW.L | Greencoat UK Wind PLC | 0.68 | 0.31 | 0.2 |
| VLTSA.PA | Voltalia SA | 2.14 | 0.79 | 0.27 |
| Low | High | |
| Unlevered beta | 0.2 | 0.29 |
| Relevered beta | 0.57 | 0.81 |
| Adjusted relevered beta | 0.71 | 0.87 |
SCATC.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 SCATC.OL:
cost_of_equity (8.35%) = risk_free_rate (3.55%) + equity_risk_premium (5.60%) * adjusted_beta (0.71) + 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.