RELAIS.HE WACC - Weighted Average Cost of Capital

The WACC of Relais Group Oyj (RELAIS.HE) is 5.6%.

The Cost of Equity of Relais Group Oyj (RELAIS.HE) is 7.30%.

The Cost of Debt of Relais Group Oyj (RELAIS.HE) is 5.30%.

	Range	Selected
Cost of equity	5.80% - 8.80%	7.30%
Tax rate	22.20% - 22.90%	22.55%
Cost of debt	4.70% - 5.90%	5.30%
WACC	4.7% - 6.6%	5.6%

WACC

RELAIS.HE WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.7%	6.7%
Adjusted beta	0.54	0.75

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.80%	8.80%

Tax rate	22.20%	22.90%
Debt/Equity ratio	1.05	1.05
Cost of debt	4.70%	5.90%

After-tax WACC	4.7%	6.6%


Selected WACC	5.6%

RELAIS.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 RELAIS.HE:

cost_of_equity (7.30%) = risk_free_rate (2.95%) + equity_risk_premium (6.20%) * adjusted_beta (0.54) + 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.