DIGIGR.HE WACC - Weighted Average Cost of Capital
The WACC of Digitalist Group Oyj (DIGIGR.HE) is 5.9%.
| Range | Selected | |
| Cost of equity | 5.6% - 7.9% | 6.75% |
| Tax rate | 0.8% - 1.5% | 1.15% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 4.5% - 7.2% | 5.9% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 5.7% | 6.7% |
| Adjusted beta | 0.5 | 0.63 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.6% | 7.9% |
| Tax rate | 0.8% | 1.5% |
| Debt/Equity ratio | 1.98 | 1.98 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 4.5% | 7.2% |
| Selected WACC | 5.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| DIGIGR.HE | Digitalist Group Oyj | 1.98 | -3.87 | -1.31 |
| BCM.WA | Betacom SA | 0.08 | 0.16 | 0.14 |
| C1V.DE | mVISE AG | 0.51 | 1.29 | 0.86 |
| FPG.PA | Union Technologies Informatique Group SA | 2.12 | -0.31 | -0.1 |
| NC5A.DE | NorCom Information Technology AG | 0.2 | -0.31 | -0.26 |
| PERF.AT | Performance Technologies IT Solutions SA | 0.06 | 0.62 | 0.59 |
| PRCO B.ST | Precio Fishbone AB | 0.1 | 0.17 | 0.16 |
| RED.LS | Reditus Sociedade Gestora de Participacoes Sociais SA | 105.44 | 0.33 | 0 |
| TLX.WA | Talex SA | 0.07 | 0.14 | 0.13 |
| TRD.L | Triad Group PLC | 0.02 | 0.7 | 0.69 |
| WIRTEK.CO | Wirtek A/S | 0.17 | 0.01 | 0.01 |
| Low | High | |
| Unlevered beta | 0.01 | 0.14 |
| Relevered beta | 0.25 | 0.45 |
| Adjusted relevered beta | 0.5 | 0.63 |
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 (6.75%) = risk_free_rate (2.95%) + equity_risk_premium (6.20%) * adjusted_beta (0.5) + 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.