SPOL.OL
Sparebank 1 Ostlandet
Price:  
184.40 
NOK
Volume:  
46,958.00
Norway | Banks
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SPOL.OL WACC - Weighted Average Cost of Capital

The WACC of Sparebank 1 Ostlandet (SPOL.OL) is 7.1%.

The Cost of Equity of Sparebank 1 Ostlandet (SPOL.OL) is 13.00%.
The Cost of Debt of Sparebank 1 Ostlandet (SPOL.OL) is 5.00%.

Range Selected
Cost of equity 10.50% - 15.50% 13.00%
Tax rate 17.10% - 17.60% 17.35%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.3% - 8.0% 7.1%
WACC

SPOL.OL WACC calculation

Category Low High
Long-term bond rate 3.3% 3.8%
Equity market risk premium 5.1% 6.1%
Adjusted beta 1.41 1.83
Additional risk adjustments 0.0% 0.5%
Cost of equity 10.50% 15.50%
Tax rate 17.10% 17.60%
Debt/Equity ratio 1.98 1.98
Cost of debt 5.00% 5.00%
After-tax WACC 6.3% 8.0%
Selected WACC 7.1%

SPOL.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 SPOL.OL:

cost_of_equity (13.00%) = risk_free_rate (3.55%) + equity_risk_premium (5.60%) * adjusted_beta (1.41) + 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.