FSKRS.HE WACC - Weighted Average Cost of Capital

The WACC of Fiskars Oyj Abp (FSKRS.HE) is 6.3%.

The Cost of Equity of Fiskars Oyj Abp (FSKRS.HE) is 7.75%.

The Cost of Debt of Fiskars Oyj Abp (FSKRS.HE) is 4.45%.

	Range	Selected
Cost of equity	6.40% - 9.10%	7.75%
Tax rate	22.30% - 29.90%	26.10%
Cost of debt	4.00% - 4.90%	4.45%
WACC	5.3% - 7.3%	6.3%

WACC

FSKRS.HE WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.7%	6.7%
Adjusted beta	0.64	0.8

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.40%	9.10%

Tax rate	22.30%	29.90%
Debt/Equity ratio	0.47	0.47
Cost of debt	4.00%	4.90%

After-tax WACC	5.3%	7.3%


Selected WACC	6.3%

FSKRS.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 FSKRS.HE:

cost_of_equity (7.75%) = risk_free_rate (2.95%) + equity_risk_premium (6.20%) * adjusted_beta (0.64) + 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.