KAMUX.HE WACC - Weighted Average Cost of Capital

The WACC of Kamux Oyj (KAMUX.HE) is 8.3%.

The Cost of Equity of Kamux Oyj (KAMUX.HE) is 6.85%.

The Cost of Debt of Kamux Oyj (KAMUX.HE) is 13.45%.

	Range	Selected
Cost of equity	5.70% - 8.00%	6.85%
Tax rate	26.30% - 27.50%	26.90%
Cost of debt	4.20% - 22.70%	13.45%
WACC	4.4% - 12.3%	8.3%

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	0.52	0.64

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.70%	8.00%

Tax rate	26.30%	27.50%
Debt/Equity ratio	1.01	1.01
Cost of debt	4.20%	22.70%

After-tax WACC	4.4%	12.3%


Selected WACC	8.3%

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 (6.85%) = risk_free_rate (2.95%) + equity_risk_premium (6.20%) * adjusted_beta (0.52) + 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.