PARTNE1.HE WACC - Weighted Average Cost of Capital

The WACC of Partnera Oyj (PARTNE1.HE) is 7.3%.

The Cost of Equity of Partnera Oyj (PARTNE1.HE) is 8.50%.

The Cost of Debt of Partnera Oyj (PARTNE1.HE) is 6.20%.

	Range	Selected
Cost of equity	7.00% - 10.00%	8.50%
Tax rate	15.30% - 19.90%	17.60%
Cost of debt	4.00% - 8.40%	6.20%
WACC	5.7% - 8.8%	7.3%

WACC

PARTNE1.HE WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.7%	6.7%
Adjusted beta	0.75	0.94

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.00%	10.00%

Tax rate	15.30%	19.90%
Debt/Equity ratio	0.56	0.56
Cost of debt	4.00%	8.40%

After-tax WACC	5.7%	8.8%


Selected WACC	7.3%

PARTNE1.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 PARTNE1.HE:

cost_of_equity (8.50%) = risk_free_rate (2.95%) + equity_risk_premium (6.20%) * adjusted_beta (0.75) + 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.