SOAG.OL WACC - Weighted Average Cost of Capital
The WACC of Sparebank 1 Ostfold Akershus (SOAG.OL) is 5.1%.
| Range | Selected | |
| Cost of equity | 5.2% - 7.2% | 6.2% |
| Tax rate | 19.1% - 19.7% | 19.4% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.6% - 5.7% | 5.1% |
| Category | Low | High |
| Long-term bond rate | 3.3% | 3.8% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.36 | 0.47 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.2% | 7.2% |
| Tax rate | 19.1% | 19.7% |
| Debt/Equity ratio | 0.95 | 0.95 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.6% | 5.7% |
| Selected WACC | 5.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SOAG.OL | Sparebank 1 Ostfold Akershus | 0.95 | 0.13 | 0.07 |
| BCJ.SW | Banque Cantonale Du Jura SA | 7.58 | 0.12 | 0.02 |
| CAT31.PA | Caisse Regionale de Credit Agricole Mutuel Toulouse 31 SC | 1.16 | 0.41 | 0.21 |
| DAB.CO | Danske Andelskassers Bank A/S | 1.09 | 0.07 | 0.04 |
| GLKBN.SW | Glarner Kantonalbank | 5.51 | 0.12 | 0.02 |
| HELG.OL | Sparebank 1 Helgeland | 1.81 | 0.71 | 0.29 |
| LINN.SW | Bank Linth LLB AG | 3.03 | -0.13 | -0.04 |
| SADG.OL | Sandnes Sparebank | 5.31 | 0.06 | 0.01 |
| SBVG.OL | Sparebank 1 BV | 2.67 | 0.61 | 0.19 |
| VVL.OL | Voss Veksel og Landmandsbank ASA | 1.26 | 0.49 | 0.24 |
| Low | High | |
| Unlevered beta | 0.03 | 0.12 |
| Relevered beta | 0.04 | 0.21 |
| Adjusted relevered beta | 0.36 | 0.47 |
SOAG.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 SOAG.OL:
cost_of_equity (6.20%) = risk_free_rate (3.55%) + equity_risk_premium (5.60%) * adjusted_beta (0.36) + 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.