VALUE.AS WACC - Weighted Average Cost of Capital

The WACC of Value8 NV (VALUE.AS) is 15.8%.

The Cost of Equity of Value8 NV (VALUE.AS) is 5.75%.

The Cost of Debt of Value8 NV (VALUE.AS) is 94.60%.

	Range	Selected
Cost of equity	4.70% - 6.80%	5.75%
Tax rate	25.00% - 25.30%	25.15%
Cost of debt	4.00% - 185.20%	94.60%
WACC	4.4% - 27.2%	15.8%

WACC

VALUE.AS WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.41	0.54

Additional risk adjustments	0.0%	0.5%
Cost of equity	4.70%	6.80%

Tax rate	25.00%	25.30%
Debt/Equity ratio	0.18	0.18
Cost of debt	4.00%	185.20%

After-tax WACC	4.4%	27.2%


Selected WACC	15.8%

VALUE.AS'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 VALUE.AS:

cost_of_equity (5.75%) = risk_free_rate (2.85%) + equity_risk_premium (5.60%) * adjusted_beta (0.41) + 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.