RAVD.TA WACC - Weighted Average Cost of Capital

The WACC of Ravad Ltd (RAVD.TA) is 6.6%.

The Cost of Equity of Ravad Ltd (RAVD.TA) is 9.55%.

The Cost of Debt of Ravad Ltd (RAVD.TA) is 5.50%.

	Range	Selected
Cost of equity	7.70% - 11.40%	9.55%
Tax rate	18.10% - 34.20%	26.15%
Cost of debt	4.00% - 7.00%	5.50%
WACC	5.4% - 7.8%	6.6%

WACC

RAVD.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.46	0.78

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.70%	11.40%

Tax rate	18.10%	34.20%
Debt/Equity ratio	1.08	1.08
Cost of debt	4.00%	7.00%

After-tax WACC	5.4%	7.8%


Selected WACC	6.6%

RAVD.TA'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 RAVD.TA:

cost_of_equity (9.55%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * 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.