Electromagnetic Geoservices ASA (EMGS.OL) WACC Analysis

As of May 24, 2025, Electromagnetic Geoservices ASA (EMGS.OL) carries a Weighted Average Cost of Capital (WACC) of 9.4%. WACC reflects the blended rate Electromagnetic Geoservices ASA must pay to both equity and debt holders.

Within that, the cost of equity is 9.4%, the cost of debt is 7.0%, and the effective tax rate is 1.9%.

Breakdown of WACC Components

• Long-term bond rate: 3.3% – 3.8%
• Equity market risk premium: 5.1% – 6.1%
• Adjusted beta: 1.19 – 1.36
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.99

What It Means for Investors

With a selected WACC of 9.4%, Electromagnetic Geoservices ASA must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a moderate financing cost structure.