ROBO.TA WACC - Weighted Average Cost of Capital

The WACC of Robogroup TEK Ltd (ROBO.TA) is 10.5%.

The Cost of Equity of Robogroup TEK Ltd (ROBO.TA) is 10.65%.

The Cost of Debt of Robogroup TEK Ltd (ROBO.TA) is 5.75%.

	Range	Selected
Cost of equity	9.30% - 12.00%	10.65%
Tax rate	6.90% - 7.50%	7.20%
Cost of debt	4.50% - 7.00%	5.75%
WACC	9.2% - 11.9%	10.5%

WACC

ROBO.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	5.6%	6.6%
Adjusted beta	0.8	0.94

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.30%	12.00%

Tax rate	6.90%	7.50%
Debt/Equity ratio	0.03	0.03
Cost of debt	4.50%	7.00%

After-tax WACC	9.2%	11.9%


Selected WACC	10.5%

ROBO.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 ROBO.TA:

cost_of_equity (10.65%) = risk_free_rate (5.05%) + equity_risk_premium (6.10%) * adjusted_beta (0.8) + 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.