HAE1T.TL WACC - Weighted Average Cost of Capital

The WACC of Harju Elekter AS (HAE1T.TL) is 9.0%.

The Cost of Equity of Harju Elekter AS (HAE1T.TL) is 10.35%.

The Cost of Debt of Harju Elekter AS (HAE1T.TL) is 5.55%.

	Range	Selected
Cost of equity	8.70% - 12.00%	10.35%
Tax rate	9.70% - 13.40%	11.55%
Cost of debt	4.00% - 7.10%	5.55%
WACC	7.4% - 10.6%	9.0%

WACC

HAE1T.TL WACC calculation

Category	Low	High

Long-term bond rate	5.9%	6.4%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.45	0.72

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.70%	12.00%

Tax rate	9.70%	13.40%
Debt/Equity ratio	0.32	0.32
Cost of debt	4.00%	7.10%

After-tax WACC	7.4%	10.6%


Selected WACC	9.0%

HAE1T.TL'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 HAE1T.TL:

cost_of_equity (10.35%) = risk_free_rate (6.15%) + equity_risk_premium (6.60%) * adjusted_beta (0.45) + 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.