KSLAV.HE WACC - Weighted Average Cost of Capital
The WACC of Keskisuomalainen Oyj (KSLAV.HE) is 4.7%.
| Range | Selected | |
| Cost of equity | 4.6% - 6.4% | 5.5% |
| Tax rate | 14.9% - 25.6% | 20.25% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.2% - 5.3% | 4.7% |
| Category | Low | High |
| Long-term bond rate | 2.6% | 3.1% |
| Equity market risk premium | 5.7% | 6.7% |
| Adjusted beta | 0.35 | 0.41 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.6% | 6.4% |
| Tax rate | 14.9% | 25.6% |
| Debt/Equity ratio | 0.57 | 0.57 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.2% | 5.3% |
| Selected WACC | 4.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| KSLAV.HE | Keskisuomalainen Oyj | 0.57 | 0.25 | 0.17 |
| ALMA.HE | Alma Media Oyj | 0.18 | 0.18 | 0.15 |
| BMY.L | Bloomsbury Publishing PLC | 0.02 | 0.76 | 0.75 |
| BONH.L | Bonhill Group PLC | 4.27 | -1.65 | -0.37 |
| GME.WA | Gremi Media SA | 0.01 | -0.09 | -0.09 |
| MON.MI | Monrif SpA | 9.78 | 0.19 | 0.02 |
| NORTHM.CO | North Media A/S | 0.26 | 0.37 | 0.31 |
| PUMU.HE | PunaMusta Media Oyj | 3.18 | 0.34 | 0.1 |
| ROU.BR | Roularta Media Group NV | 0.04 | -0.27 | -0.26 |
| S24.MI | Il Sole 24 Ore SpA | 1.3 | 0.06 | 0.03 |
| Low | High | |
| Unlevered beta | 0.02 | 0.12 |
| Relevered beta | 0.03 | 0.12 |
| Adjusted relevered beta | 0.35 | 0.41 |
KSLAV.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 KSLAV.HE:
cost_of_equity (5.50%) = risk_free_rate (2.85%) + equity_risk_premium (6.20%) * adjusted_beta (0.35) + 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.