BIOBV.HE
Biohit Oyj
Price:  
2.72 
EUR
Volume:  
29,307.00
Finland | Health Care Equipment & Supplies
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BIOBV.HE WACC - Weighted Average Cost of Capital

The WACC of Biohit Oyj (BIOBV.HE) is 7.9%.

The Cost of Equity of Biohit Oyj (BIOBV.HE) is 7.80%.
The Cost of Debt of Biohit Oyj (BIOBV.HE) is 14.20%.

Range Selected
Cost of equity 6.40% - 9.20% 7.80%
Tax rate 13.10% - 15.20% 14.15%
Cost of debt 4.00% - 24.40% 14.20%
WACC 6.3% - 9.4% 7.9%
WACC

BIOBV.HE WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 5.7% 6.7%
Adjusted beta 0.64 0.82
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.40% 9.20%
Tax rate 13.10% 15.20%
Debt/Equity ratio 0.02 0.02
Cost of debt 4.00% 24.40%
After-tax WACC 6.3% 9.4%
Selected WACC 7.9%

BIOBV.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 BIOBV.HE:

cost_of_equity (7.80%) = risk_free_rate (2.95%) + equity_risk_premium (6.20%) * adjusted_beta (0.64) + 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.