KCR.HE WACC - Weighted Average Cost of Capital
The WACC of Konecranes Abp (KCR.HE) is 9.3%.
| Range | Selected | |
| Cost of equity | 9.0% - 11.4% | 10.2% |
| Tax rate | 24.7% - 26.0% | 25.35% |
| Cost of debt | 4.0% - 5.9% | 4.95% |
| WACC | 8.1% - 10.4% | 9.3% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 5.7% | 6.7% |
| Adjusted beta | 1.1 | 1.15 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.0% | 11.4% |
| Tax rate | 24.7% | 26.0% |
| Debt/Equity ratio | 0.16 | 0.16 |
| Cost of debt | 4.0% | 5.9% |
| After-tax WACC | 8.1% | 10.4% |
| Selected WACC | 9.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| KCR.HE | Konecranes Abp | 0.16 | 1.54 | 1.37 |
| AALB.AS | Aalberts NV | 0.19 | 1.28 | 1.12 |
| CGCBV.HE | Cargotec Corp | 0.3 | 1.1 | 0.89 |
| DAN.MI | Danieli & C Officine Meccaniche SpA | 0.27 | 0.98 | 0.81 |
| DUE.DE | Duerr AG | 0.81 | 1.58 | 0.98 |
| FI-N.SW | Georg Fischer AG | 0.23 | 1.23 | 1.05 |
| KU2.DE | Kuka AG | 0.19 | 0.75 | 0.65 |
| SUN.SW | Sulzer AG | 0.24 | 1.33 | 1.13 |
| TREL B.ST | Trelleborg AB | 0.11 | 1.16 | 1.07 |
| VALMT.HE | Valmet Oyj | 0.31 | 1.79 | 1.45 |
| Low | High | |
| Unlevered beta | 1.02 | 1.09 |
| Relevered beta | 1.15 | 1.22 |
| Adjusted relevered beta | 1.1 | 1.15 |
KCR.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 KCR.HE:
cost_of_equity (10.20%) = risk_free_rate (2.95%) + equity_risk_premium (6.20%) * adjusted_beta (1.1) + 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.