ESENSE.HE WACC - Weighted Average Cost of Capital

The WACC of Enersense International Oyj (ESENSE.HE) is 8.2%.

The Cost of Equity of Enersense International Oyj (ESENSE.HE) is 10.80%.

The Cost of Debt of Enersense International Oyj (ESENSE.HE) is 6.95%.

	Range	Selected
Cost of equity	8.20% - 13.40%	10.80%
Tax rate	10.10% - 14.10%	12.10%
Cost of debt	6.90% - 7.00%	6.95%
WACC	7.1% - 9.3%	8.2%

WACC

ESENSE.HE WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.7%	6.7%
Adjusted beta	0.95	1.45

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.20%	13.40%

Tax rate	10.10%	14.10%
Debt/Equity ratio	1.25	1.25
Cost of debt	6.90%	7.00%

After-tax WACC	7.1%	9.3%


Selected WACC	8.2%

ESENSE.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 ESENSE.HE:

cost_of_equity (10.80%) = risk_free_rate (2.95%) + equity_risk_premium (6.20%) * adjusted_beta (0.95) + 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.