SCHO.CO
Schouw & Co A/S
Price:  
580.00 
DKK
Volume:  
54,333.00
Denmark | Food Products
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SCHO.CO WACC - Weighted Average Cost of Capital

The WACC of Schouw & Co A/S (SCHO.CO) is 5.5%.

The Cost of Equity of Schouw & Co A/S (SCHO.CO) is 6.20%.
The Cost of Debt of Schouw & Co A/S (SCHO.CO) is 5.00%.

Range Selected
Cost of equity 5.10% - 7.30% 6.20%
Tax rate 24.40% - 25.90% 25.15%
Cost of debt 5.00% - 5.00% 5.00%
WACC 4.7% - 6.2% 5.5%
WACC

SCHO.CO WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.47 0.59
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.10% 7.30%
Tax rate 24.40% 25.90%
Debt/Equity ratio 0.44 0.44
Cost of debt 5.00% 5.00%
After-tax WACC 4.7% 6.2%
Selected WACC 5.5%

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 (6.20%) = 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.