The WACC of Koninklijke Vopak NV (VPK.AS) is 5.3%.
Range | Selected | |
Cost of equity | 5.4% - 7.2% | 6.3% |
Tax rate | 17.3% - 18.7% | 18% |
Cost of debt | 4.0% - 4.5% | 4.25% |
WACC | 4.6% - 5.9% | 5.3% |
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 | 5.4% | 7.2% |
Tax rate | 17.3% | 18.7% |
Debt/Equity ratio | 0.57 | 0.57 |
Cost of debt | 4.0% | 4.5% |
After-tax WACC | 4.6% | 5.9% |
Selected WACC | 5.3% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
VPK.AS | Koninklijke Vopak NV | 0.57 | 0.61 | 0.41 |
ADS.OL | Ads Maritime Holding Plc | 0.02 | 0.26 | 0.26 |
ALNG.OL | Awilco LNG ASA | 4.63 | 1.04 | 0.22 |
CCOR B.ST | Concordia Maritime AB | 1.52 | 0.54 | 0.24 |
EURN.BR | Euronav NV | 0.36 | -0.14 | -0.11 |
EXM.BR | Exmar NV | 0.38 | -0.12 | -0.09 |
FLNG.OL | FLEX LNG Ltd | 1.46 | 0.63 | 0.29 |
FLUX.BR | Fluxys Belgium NV | 0.76 | 0.76 | 0.47 |
HLNG.OL | Hoegh LNG Holdings Ltd | 9.23 | 1.92 | 0.22 |
OET.OL | Okeanis Eco Tankers Corp | 0.82 | 0.86 | 0.51 |
Low | High | |
Unlevered beta | 0.23 | 0.27 |
Relevered beta | 0.34 | 0.39 |
Adjusted relevered beta | 0.56 | 0.59 |
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.