TOTA.CO WACC - Weighted Average Cost of Capital
The WACC of Totalbanken A/S (TOTA.CO) is 6.2%.
| Range | Selected | |
| Cost of equity | 5.2% - 7.5% | 6.35% |
| Tax rate | 4.5% - 13.0% | 8.75% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.1% - 7.2% | 6.2% |
| Category | Low | High |
| Long-term bond rate | 0.4% | 0.9% |
| Equity market risk premium | 5.2% | 6.2% |
| Adjusted beta | 0.43 | 0.58 |
| Additional risk adjustments | 2.5% | 3.0% |
| Cost of equity | 5.2% | 7.5% |
| Tax rate | 4.5% | 13.0% |
| Debt/Equity ratio | 0.1 | 0.1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.1% | 7.2% |
| Selected WACC | 6.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| TOTA.CO | Totalbanken A/S | 0.1 | -0.16 | -0.15 |
| AASB.OL | Aasen Sparebank | 6.01 | 0 | 0 |
| FYNBK.CO | Fynske Bank A/S | 0.01 | 0.11 | 0.11 |
| HSPG.OL | Holand og Setskog Sparebank | 23.55 | 0.35 | 0.02 |
| HVID.CO | Hvidbjerg Bank A/S | 0.14 | 0.07 | 0.06 |
| KRAB.OL | Kraft Bank ASA | 0.12 | -0.15 | -0.13 |
| MNBA.CO | Moens Bank A/S | 0.25 | 0.2 | 0.17 |
| NISB.OL | Nidaros Sparebank | 6.01 | 0.49 | 0.08 |
| SOGN.OL | Sogn Sparebank | 4.33 | 0.48 | 0.11 |
| VVL.OL | Voss Veksel og Landmandsbank ASA | 1.26 | 0.49 | 0.24 |
| Low | High | |
| Unlevered beta | 0.04 | 0.09 |
| Relevered beta | 0.15 | 0.37 |
| Adjusted relevered beta | 0.43 | 0.58 |
TOTA.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 TOTA.CO:
cost_of_equity (6.35%) = risk_free_rate (0.65%) + equity_risk_premium (5.70%) * adjusted_beta (0.43) + risk_adjustments (2.75%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.