KNF1L.VS WACC - Weighted Average Cost of Capital

The WACC of Klaipedos Nafta AB (KNF1L.VS) is 4.5%.

The Cost of Equity of Klaipedos Nafta AB (KNF1L.VS) is 8.40%.

The Cost of Debt of Klaipedos Nafta AB (KNF1L.VS) is 4.45%.

	Range	Selected
Cost of equity	6.60% - 10.20%	8.40%
Tax rate	15.10% - 18.30%	16.70%
Cost of debt	4.00% - 4.90%	4.45%
WACC	4.0% - 5.1%	4.5%

WACC

KNF1L.VS WACC calculation

Category	Low	High

Long-term bond rate	4.1%	4.6%
Equity market risk premium	6.8%	7.8%
Adjusted beta	0.37	0.65

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.60%	10.20%

Tax rate	15.10%	18.30%
Debt/Equity ratio	4.58	4.58
Cost of debt	4.00%	4.90%

After-tax WACC	4.0%	5.1%


Selected WACC	4.5%

KNF1L.VS'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 KNF1L.VS:

cost_of_equity (8.40%) = risk_free_rate (4.35%) + equity_risk_premium (7.30%) * adjusted_beta (0.37) + 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.