REG1V.HE WACC - Weighted Average Cost of Capital

The WACC of Revenio Group Oyj (REG1V.HE) is 8.9%.

The Cost of Equity of Revenio Group Oyj (REG1V.HE) is 8.75%.

The Cost of Debt of Revenio Group Oyj (REG1V.HE) is 16.15%.

	Range	Selected
Cost of equity	6.90% - 10.60%	8.75%
Tax rate	24.30% - 24.80%	24.55%
Cost of debt	4.00% - 28.30%	16.15%
WACC	6.8% - 11.0%	8.9%

WACC

REG1V.HE WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.7%	6.7%
Adjusted beta	0.74	1.02

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.90%	10.60%

Tax rate	24.30%	24.80%
Debt/Equity ratio	0.04	0.04
Cost of debt	4.00%	28.30%

After-tax WACC	6.8%	11.0%


Selected WACC	8.9%

REG1V.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 REG1V.HE:

cost_of_equity (8.75%) = risk_free_rate (2.95%) + equity_risk_premium (6.20%) * adjusted_beta (0.74) + 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.