ESENSE.HE WACC - Weighted Average Cost of Capital

The WACC of Enersense International Oyj (ESENSE.HE) is 11.5%.

The Cost of Equity of Enersense International Oyj (ESENSE.HE) is 11.35%.

The Cost of Debt of Enersense International Oyj (ESENSE.HE) is 13.30%.

	Range	Selected
Cost of equity	9.10% - 13.60%	11.35%
Tax rate	10.10% - 14.10%	12.10%
Cost of debt	6.90% - 19.70%	13.30%
WACC	7.5% - 15.5%	11.5%

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	1.12	1.47

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.10%	13.60%

Tax rate	10.10%	14.10%
Debt/Equity ratio	1.27	1.27
Cost of debt	6.90%	19.70%

After-tax WACC	7.5%	15.5%


Selected WACC	11.5%

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 (11.35%) = risk_free_rate (2.95%) + equity_risk_premium (6.20%) * adjusted_beta (1.12) + 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.