DIGIGR.HE WACC - Weighted Average Cost of Capital

The WACC of Digitalist Group Oyj (DIGIGR.HE) is 5.7%.

The Cost of Equity of Digitalist Group Oyj (DIGIGR.HE) is 6.10%.

The Cost of Debt of Digitalist Group Oyj (DIGIGR.HE) is 5.50%.

	Range	Selected
Cost of equity	4.80% - 7.40%	6.10%
Tax rate	0.80% - 1.50%	1.15%
Cost of debt	4.00% - 7.00%	5.50%
WACC	4.3% - 7.1%	5.7%

WACC

DIGIGR.HE WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.7%	6.7%
Adjusted beta	0.36	0.54

Additional risk adjustments	0.0%	0.5%
Cost of equity	4.80%	7.40%

Tax rate	0.80%	1.50%
Debt/Equity ratio	1.49	1.49
Cost of debt	4.00%	7.00%

After-tax WACC	4.3%	7.1%


Selected WACC	5.7%

DIGIGR.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 DIGIGR.HE:

cost_of_equity (6.10%) = risk_free_rate (2.95%) + equity_risk_premium (6.20%) * adjusted_beta (0.36) + 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.