KAMUX.HE WACC - Weighted Average Cost of Capital

The WACC of Kamux Oyj (KAMUX.HE) is 7.4%.

The Cost of Equity of Kamux Oyj (KAMUX.HE) is 6.20%.

The Cost of Debt of Kamux Oyj (KAMUX.HE) is 11.85%.

	Range	Selected
Cost of equity	4.50% - 7.90%	6.20%
Tax rate	22.80% - 27.00%	24.90%
Cost of debt	4.00% - 19.70%	11.85%
WACC	3.8% - 11.0%	7.4%

WACC

KAMUX.HE WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.7%	6.7%
Adjusted beta	0.31	0.62

Additional risk adjustments	0.0%	0.5%
Cost of equity	4.50%	7.90%

Tax rate	22.80%	27.00%
Debt/Equity ratio	0.93	0.93
Cost of debt	4.00%	19.70%

After-tax WACC	3.8%	11.0%


Selected WACC	7.4%

KAMUX.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 KAMUX.HE:

cost_of_equity (6.20%) = risk_free_rate (2.95%) + equity_risk_premium (6.20%) * adjusted_beta (0.31) + 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.