Olav Thon Eiendomsselskap ASA (OLT.OL) WACC Analysis

As of June 7, 2025, Olav Thon Eiendomsselskap ASA (OLT.OL) carries a Weighted Average Cost of Capital (WACC) of 5.8%. WACC reflects the blended rate Olav Thon Eiendomsselskap ASA must pay to both equity and debt holders.

Within that, the cost of equity is 6.0%, the cost of debt is 4.4%, and the effective tax rate is 21.5%.

Breakdown of WACC Components

• Long-term bond rate: 3.3% – 3.8%
• Equity market risk premium: 5.1% – 6.1%
• Adjusted beta: 0.52 – 0.59
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.8

What It Means for Investors

With a selected WACC of 5.8%, Olav Thon Eiendomsselskap ASA must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.