SCHO.CO WACC - Weighted Average Cost of Capital
The WACC of Schouw & Co A/S (SCHO.CO) is 5.5%.
| Range | Selected | |
| Cost of equity | 5.1% - 7.5% | 6.3% |
| Tax rate | 24.4% - 25.9% | 25.15% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.7% - 6.4% | 5.5% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.47 | 0.61 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.1% | 7.5% |
| Tax rate | 24.4% | 25.9% |
| Debt/Equity ratio | 0.42 | 0.42 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.7% | 6.4% |
| Selected WACC | 5.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SCHO.CO | Schouw & Co A/S | 0.42 | 0.05 | 0.04 |
| AAK.ST | AAK AB (publ) | 0.05 | 0.16 | 0.16 |
| AGR.VI | Agrana Beteiligungs AG | 0.8 | 0.41 | 0.26 |
| ARYN.SW | Aryzta AG | 0.38 | 0.8 | 0.62 |
| AUSS.OL | Austevoll Seafood ASA | 0.8 | 0.71 | 0.44 |
| BON.PA | Bonduelle SA | 2.03 | 0.39 | 0.15 |
| EBRO.MC | Ebro Foods SA | 0.19 | 0.09 | 0.08 |
| FBEL.PA | BEL SA | 0.31 | 0.51 | 0.42 |
| TATE.L | Tate & Lyle PLC | 0.57 | 1.17 | 0.82 |
| UNBL.PA | Unibel SA | 0.53 | -0.08 | -0.06 |
| Low | High | |
| Unlevered beta | 0.16 | 0.32 |
| Relevered beta | 0.21 | 0.42 |
| Adjusted relevered beta | 0.47 | 0.61 |
SCHO.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 SCHO.CO:
cost_of_equity (6.30%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.47) + 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.