FODELIA.HE WACC - Weighted Average Cost of Capital

The WACC of Fodelia Oyj (FODELIA.HE) is 6.1%.

The Cost of Equity of Fodelia Oyj (FODELIA.HE) is 6.20%.

The Cost of Debt of Fodelia Oyj (FODELIA.HE) is 5.85%.

	Range	Selected
Cost of equity	4.80% - 7.60%	6.20%
Tax rate	20.00% - 20.00%	20.00%
Cost of debt	5.40% - 6.30%	5.85%
WACC	4.7% - 7.4%	6.1%

WACC

FODELIA.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	0.58

Additional risk adjustments	0.0%	0.5%
Cost of equity	4.80%	7.60%

Tax rate	20.00%	20.00%
Debt/Equity ratio	0.11	0.11
Cost of debt	5.40%	6.30%

After-tax WACC	4.7%	7.4%


Selected WACC	6.1%

FODELIA.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 FODELIA.HE:

cost_of_equity (6.20%) = 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.