HKSAV.HE WACC - Weighted Average Cost of Capital
The WACC of HKScan Oyj (HKSAV.HE) is 9.3%.
| Range | Selected | |
| Cost of equity | 4.7% - 6.6% | 5.65% |
| Tax rate | 20.0% - 20.0% | 20% |
| Cost of debt | 6.4% - 18.6% | 12.5% |
| WACC | 5.1% - 13.6% | 9.3% |
| Category | Low | High |
| Long-term bond rate | 2.6% | 3.1% |
| Equity market risk premium | 5.7% | 6.7% |
| Adjusted beta | 0.36 | 0.45 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.7% | 6.6% |
| Tax rate | 20.0% | 20.0% |
| Debt/Equity ratio | 5.38 | 5.38 |
| Cost of debt | 6.4% | 18.6% |
| After-tax WACC | 5.1% | 13.6% |
| Selected WACC | 9.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| HKSAV.HE | HKScan Oyj | 5.38 | -0.04 | -0.01 |
| ALFLE.PA | Fleury Michon SA | 2.08 | 0.2 | 0.07 |
| ATRAV.HE | Atria Oyj | 0.79 | 0.14 | 0.08 |
| BAKK.L | Bakkavor Group Plc | 0.26 | 0.54 | 0.45 |
| CWK.L | Cranswick PLC | 0.06 | 0.63 | 0.6 |
| EBRO.MC | Ebro Foods SA | 0.19 | 0.14 | 0.12 |
| GNC.L | Greencore Group PLC | 0.27 | 0.94 | 0.77 |
| MHPC.L | Mhp Se | 3.53 | 1.28 | 0.34 |
| MLK.WA | Milkiland NV | 5.32 | 1.25 | 0.24 |
| ORON.SW | Orior AG | 2.06 | 1.14 | 0.43 |
| Low | High | |
| Unlevered beta | 0.19 | 0.37 |
| Relevered beta | 0.04 | 0.18 |
| Adjusted relevered beta | 0.36 | 0.45 |
HKSAV.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 HKSAV.HE:
cost_of_equity (5.65%) = risk_free_rate (2.85%) + 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.