The WACC of Vilkyskiu Pienine AB (VLP1L.VS) is 9.4%.
Range | Selected | |
Cost of equity | 9.4% - 12.7% | 11.05% |
Tax rate | 9.2% - 10.5% | 9.85% |
Cost of debt | 4.0% - 4.5% | 4.25% |
WACC | 8.1% - 10.7% | 9.4% |
Category | Low | High |
Long-term bond rate | 3.4% | 3.9% |
Equity market risk premium | 6.3% | 7.3% |
Adjusted beta | 0.94 | 1.12 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 9.4% | 12.7% |
Tax rate | 9.2% | 10.5% |
Debt/Equity ratio | 0.29 | 0.29 |
Cost of debt | 4.0% | 4.5% |
After-tax WACC | 8.1% | 10.7% |
Selected WACC | 9.4% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
VLP1L.VS | Vilkyskiu Pienine AB | 0.29 | 1.06 | 0.84 |
DARDL.IS | Dardanel Onentas Gida Sanayi AS | 0.2 | 1.37 | 1.16 |
GMI.SW | Groupe Minoteries SA | 0.05 | 0.23 | 0.22 |
KMOL.AT | Karamolengos Bakery Industry SA | 2.76 | 0.37 | 0.11 |
KYLO.AT | Loulis Mills SA | 0.8 | 0.91 | 0.53 |
PETUN.IS | Pinar Entegre Et ve Un Sanayii AS | 0.13 | 1.17 | 1.05 |
PMP.WA | Pamapol SA | 2.63 | 0 | 0 |
TATGD.IS | Tat Gida Sanayi AS | 0.26 | 1.06 | 0.86 |
TUKAS.IS | Tukas Gida Sanayi ve Ticaret AS | 0.33 | 1.68 | 1.3 |
ZMP1L.VS | Zemaitijos Pienas AB | 0.11 | 1.94 | 1.76 |
Low | High | |
Unlevered beta | 0.72 | 0.94 |
Relevered beta | 0.91 | 1.18 |
Adjusted relevered beta | 0.94 | 1.12 |
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 VLP1L.VS:
cost_of_equity (11.05%) = risk_free_rate (3.65%) + equity_risk_premium (6.80%) * adjusted_beta (0.94) + 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.