APETIT.HE WACC - Weighted Average Cost of Capital

The WACC of Apetit Oyj (APETIT.HE) is 8.5%.

The Cost of Equity of Apetit Oyj (APETIT.HE) is 8.60%.

The Cost of Debt of Apetit Oyj (APETIT.HE) is 9.60%.

	Range	Selected
Cost of equity	6.60% - 10.60%	8.60%
Tax rate	15.70% - 17.30%	16.50%
Cost of debt	7.00% - 12.20%	9.60%
WACC	6.4% - 10.5%	8.5%

WACC

APETIT.HE WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.7%	6.7%
Adjusted beta	0.68	1.02

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.60%	10.60%

Tax rate	15.70%	17.30%
Debt/Equity ratio	0.25	0.25
Cost of debt	7.00%	12.20%

After-tax WACC	6.4%	10.5%


Selected WACC	8.5%

APETIT.HE's CAPM model and how its cost of Equity is calculated

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 APETIT.HE:

cost_of_equity (8.60%) = risk_free_rate (2.95%) + equity_risk_premium (6.20%) * adjusted_beta (0.68) + 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.