Aygaz AS (AYGAZ.IS) WACC Analysis

As of June 17, 2025, Aygaz AS (AYGAZ.IS) carries a Weighted Average Cost of Capital (WACC) of 26.4%. WACC reflects the blended rate Aygaz AS must pay to both equity and debt holders.

Within that, the cost of equity is 27.3%, the cost of debt is 15.7%, and the effective tax rate is 9.7%.

Breakdown of WACC Components

• Long-term bond rate: 21.4% – 21.9%
• Equity market risk premium: 10.2% – 11.2%
• Adjusted beta: 0.59 – 0.73
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.29

What It Means for Investors

With a selected WACC of 26.4%, Aygaz AS must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a relatively high financing requirement.