RIMO.TA WACC - Weighted Average Cost of Capital

The WACC of Rimoni Industries Ltd (RIMO.TA) is 10.3%.

The Cost of Equity of Rimoni Industries Ltd (RIMO.TA) is 10.35%.

The Cost of Debt of Rimoni Industries Ltd (RIMO.TA) is 4.25%.

	Range	Selected
Cost of equity	9.20% - 11.50%	10.35%
Tax rate	10.50% - 11.00%	10.75%
Cost of debt	4.00% - 4.50%	4.25%
WACC	9.2% - 11.4%	10.3%

WACC

RIMO.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.71	0.79

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.20%	11.50%

Tax rate	10.50%	11.00%
Debt/Equity ratio	0.01	0.01
Cost of debt	4.00%	4.50%

After-tax WACC	9.2%	11.4%


Selected WACC	10.3%

RIMO.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 RIMO.TA:

cost_of_equity (10.35%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.71) + 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.