KEMIRA.HE
Kemira Oyj
Price:  
18.59 
EUR
Volume:  
115,148
Finland | Chemicals

KEMIRA.HE WACC - Weighted Average Cost of Capital

The WACC of Kemira Oyj (KEMIRA.HE) is 7.9%.

The Cost of Equity of Kemira Oyj (KEMIRA.HE) is 9.25%.
The Cost of Debt of Kemira Oyj (KEMIRA.HE) is 4.25%.

RangeSelected
Cost of equity8.2% - 10.3%9.25%
Tax rate22.1% - 22.8%22.45%
Cost of debt4.0% - 4.5%4.25%
WACC7.1% - 8.8%7.9%
WACC

KEMIRA.HE WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium5.7%6.7%
Adjusted beta0.960.98
Additional risk adjustments0.0%0.5%
Cost of equity8.2%10.3%
Tax rate22.1%22.8%
Debt/Equity ratio
0.280.28
Cost of debt4.0%4.5%
After-tax WACC7.1%8.8%
Selected WACC7.9%

KEMIRA.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 KEMIRA.HE:

cost_of_equity (9.25%) = risk_free_rate (2.95%) + equity_risk_premium (6.20%) * adjusted_beta (0.96) + 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.