Sbanken ASA (SBANK.OL) WACC Analysis

As of June 2, 2025, Sbanken ASA (SBANK.OL) carries a Weighted Average Cost of Capital (WACC) of 5.6%. WACC reflects the blended rate Sbanken ASA must pay to both equity and debt holders.

Within that, the cost of equity is 7.4%, the cost of debt is 5.0%, and the effective tax rate is 22.5%.

Breakdown of WACC Components

• Long-term bond rate: 3.1% – 3.6%
• Equity market risk premium: 4.7% – 5.7%
• Adjusted beta: 0.92 – 1.57
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 2.63

What It Means for Investors

With a selected WACC of 5.6%, Sbanken ASA must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.