NOHO.HE WACC - Weighted Average Cost of Capital

The WACC of NoHo Partners Oyj (NOHO.HE) is 6.1%.

The Cost of Equity of NoHo Partners Oyj (NOHO.HE) is 7.70%.

The Cost of Debt of NoHo Partners Oyj (NOHO.HE) is 6.50%.

	Range	Selected
Cost of equity	5.80% - 9.60%	7.70%
Tax rate	18.20% - 19.50%	18.85%
Cost of debt	5.00% - 8.00%	6.50%
WACC	4.7% - 7.6%	6.1%

WACC

NOHO.HE WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.7%	6.7%
Adjusted beta	0.55	0.87

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.80%	9.60%

Tax rate	18.20%	19.50%
Debt/Equity ratio	1.76	1.76
Cost of debt	5.00%	8.00%

After-tax WACC	4.7%	7.6%


Selected WACC	6.1%

NOHO.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 NOHO.HE:

cost_of_equity (7.70%) = risk_free_rate (2.95%) + equity_risk_premium (6.20%) * adjusted_beta (0.55) + 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.