NIXU.HE WACC - Weighted Average Cost of Capital

The WACC of Nixu Oyj (NIXU.HE) is 6.5%.

The Cost of Equity of Nixu Oyj (NIXU.HE) is 6.10%.

The Cost of Debt of Nixu Oyj (NIXU.HE) is 13.75%.

	Range	Selected
Cost of equity	5.30% - 6.90%	6.10%
Tax rate	6.20% - 18.80%	12.50%
Cost of debt	4.80% - 22.70%	13.75%
WACC	5.3% - 7.6%	6.5%

WACC

NIXU.HE WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.7%	6.7%
Adjusted beta	0.46	0.47

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.30%	6.90%

Tax rate	6.20%	18.80%
Debt/Equity ratio	0.07	0.07
Cost of debt	4.80%	22.70%

After-tax WACC	5.3%	7.6%


Selected WACC	6.5%

NIXU.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 NIXU.HE:

cost_of_equity (6.10%) = risk_free_rate (2.95%) + equity_risk_premium (6.20%) * adjusted_beta (0.46) + 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.