SSG.OL WACC - Weighted Average Cost of Capital

The WACC of Self Storage Group ASA (SSG.OL) is 6.8%.

The Cost of Equity of Self Storage Group ASA (SSG.OL) is 7.35%.

The Cost of Debt of Self Storage Group ASA (SSG.OL) is 6.95%.

	Range	Selected
Cost of equity	6.00% - 8.70%	7.35%
Tax rate	18.80% - 19.90%	19.35%
Cost of debt	6.50% - 7.40%	6.95%
WACC	5.8% - 7.9%	6.8%

WACC

SSG.OL WACC calculation

Category	Low	High

Long-term bond rate	3.3%	3.8%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.52	0.71

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.00%	8.70%

Tax rate	18.80%	19.90%
Debt/Equity ratio	0.42	0.42
Cost of debt	6.50%	7.40%

After-tax WACC	5.8%	7.9%


Selected WACC	6.8%

SSG.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 SSG.OL:

cost_of_equity (7.35%) = risk_free_rate (3.55%) + equity_risk_premium (5.60%) * adjusted_beta (0.52) + 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.