SIEVI.HE WACC - Weighted Average Cost of Capital

The WACC of Sievi Capital Oyj (SIEVI.HE) is 6.1%.

The Cost of Equity of Sievi Capital Oyj (SIEVI.HE) is 6.05%.

The Cost of Debt of Sievi Capital Oyj (SIEVI.HE) is 5.00%.

	Range	Selected
Cost of equity	4.70% - 7.40%	6.05%
Tax rate	16.60% - 17.70%	17.15%
Cost of debt	5.00% - 5.00%	5.00%
WACC	4.7% - 7.4%	6.1%

WACC

SIEVI.HE WACC calculation

Category	Low	High

Long-term bond rate	0.3%	0.8%
Equity market risk premium	5.6%	6.6%
Adjusted beta	0.8	0.93

Additional risk adjustments	0.0%	0.5%
Cost of equity	4.70%	7.40%

Tax rate	16.60%	17.70%
Debt/Equity ratio	0	0
Cost of debt	5.00%	5.00%

After-tax WACC	4.7%	7.4%


Selected WACC	6.1%

SIEVI.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 SIEVI.HE:

cost_of_equity (6.05%) = risk_free_rate (0.55%) + 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.