VPK.AS WACC - Weighted Average Cost of Capital

The WACC of Koninklijke Vopak NV (VPK.AS) is 5.3%.

The Cost of Equity of Koninklijke Vopak NV (VPK.AS) is 6.30%.

The Cost of Debt of Koninklijke Vopak NV (VPK.AS) is 4.40%.

	Range	Selected
Cost of equity	5.40% - 7.20%	6.30%
Tax rate	17.30% - 18.70%	18.00%
Cost of debt	4.30% - 4.50%	4.40%
WACC	4.7% - 5.9%	5.3%

WACC

VPK.AS WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.56	0.59

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.40%	7.20%

Tax rate	17.30%	18.70%
Debt/Equity ratio	0.6	0.6
Cost of debt	4.30%	4.50%

After-tax WACC	4.7%	5.9%


Selected WACC	5.3%

VPK.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 VPK.AS:

cost_of_equity (6.30%) = risk_free_rate (2.85%) + equity_risk_premium (5.60%) * adjusted_beta (0.56) + 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.