CAPMAN.HE WACC - Weighted Average Cost of Capital

The WACC of CapMan Oyj (CAPMAN.HE) is 8.1%.

The Cost of Equity of CapMan Oyj (CAPMAN.HE) is 7.50%.

The Cost of Debt of CapMan Oyj (CAPMAN.HE) is 13.60%.

	Range	Selected
Cost of equity	6.30% - 8.70%	7.50%
Tax rate	19.90% - 27.10%	23.50%
Cost of debt	4.50% - 22.70%	13.60%
WACC	5.7% - 10.6%	8.1%

WACC

CAPMAN.HE WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.7%	6.7%
Adjusted beta	0.63	0.74

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.30%	8.70%

Tax rate	19.90%	27.10%
Debt/Equity ratio	0.31	0.31
Cost of debt	4.50%	22.70%

After-tax WACC	5.7%	10.6%


Selected WACC	8.1%

CAPMAN.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 CAPMAN.HE:

cost_of_equity (7.50%) = risk_free_rate (2.95%) + equity_risk_premium (6.20%) * adjusted_beta (0.63) + 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.