BAS1V.HE WACC - Weighted Average Cost of Capital
The WACC of Basware Oyj (BAS1V.HE) is 8.0%.
| Range | Selected | |
| Cost of equity | 6.9% - 10.0% | 8.45% |
| Tax rate | 5.6% - 6.1% | 5.85% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.6% - 9.3% | 8.0% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 5.7% | 6.7% |
| Adjusted beta | 0.73 | 0.94 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.9% | 10.0% |
| Tax rate | 5.6% | 6.1% |
| Debt/Equity ratio | 0.15 | 0.15 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.6% | 9.3% |
| Selected WACC | 8.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BAS1V.HE | Basware Oyj | 0.15 | 0.95 | 0.83 |
| ALFA.L | Alfa Financial Software Holdings PLC | 0.01 | 0.32 | 0.32 |
| APTD.L | Aptitude Software Group PLC | 0.07 | -0.29 | -0.28 |
| ESI.PA | ESI Group SA | 0.05 | 0.84 | 0.8 |
| FBEN.DE | Fyber NV | 0.33 | -0.13 | -0.1 |
| GKS.DE | GK Software SE | 0.05 | 0.84 | 0.8 |
| LIN.PA | Linedata Services SA | 0.28 | 0.52 | 0.41 |
| OSP2.DE | USU Software AG | 0.09 | 0.9 | 0.83 |
| PSAN.DE | PSI Software AG | 0.11 | 1.3 | 1.17 |
| RIVER.OL | River Tech plc | 0.06 | 0.64 | 0.61 |
| Low | High | |
| Unlevered beta | 0.53 | 0.8 |
| Relevered beta | 0.6 | 0.91 |
| Adjusted relevered beta | 0.73 | 0.94 |
BAS1V.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 BAS1V.HE:
cost_of_equity (8.45%) = risk_free_rate (2.95%) + equity_risk_premium (6.20%) * adjusted_beta (0.73) + 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.