BIOBV.HE
Biohit Oyj
Price:  
2.68 
EUR
Volume:  
5,334.00
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 7.0%.

The Cost of Equity of Biohit Oyj (BIOBV.HE) is 6.95%.
The Cost of Debt of Biohit Oyj (BIOBV.HE) is 14.20%.

Range Selected
Cost of equity 5.50% - 8.40% 6.95%
Tax rate 13.10% - 15.20% 14.15%
Cost of debt 4.00% - 24.40% 14.20%
WACC 5.5% - 8.6% 7.0%
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 0.49 0.7
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.50% 8.40%
Tax rate 13.10% 15.20%
Debt/Equity ratio 0.01 0.01
Cost of debt 4.00% 24.40%
After-tax WACC 5.5% 8.6%
Selected WACC 7.0%

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 (6.95%) = risk_free_rate (2.95%) + equity_risk_premium (6.20%) * adjusted_beta (0.49) + 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.