NLG1V.HE WACC - Weighted Average Cost of Capital

The WACC of Nurminen Logistics Oyj (NLG1V.HE) is 7.1%.

The Cost of Equity of Nurminen Logistics Oyj (NLG1V.HE) is 8.85%.

The Cost of Debt of Nurminen Logistics Oyj (NLG1V.HE) is 4.75%.

	Range	Selected
Cost of equity	6.60% - 11.10%	8.85%
Tax rate	20.20% - 21.80%	21.00%
Cost of debt	4.00% - 5.50%	4.75%
WACC	5.4% - 8.8%	7.1%

WACC

NLG1V.HE WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.7%	6.7%
Adjusted beta	0.68	1.1

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.60%	11.10%

Tax rate	20.20%	21.80%
Debt/Equity ratio	0.53	0.53
Cost of debt	4.00%	5.50%

After-tax WACC	5.4%	8.8%


Selected WACC	7.1%

NLG1V.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 NLG1V.HE:

cost_of_equity (8.85%) = risk_free_rate (2.95%) + equity_risk_premium (6.20%) * adjusted_beta (0.68) + 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.