TITAN.HE WACC - Weighted Average Cost of Capital

The WACC of Titanium Oyj (TITAN.HE) is 8.2%.

The Cost of Equity of Titanium Oyj (TITAN.HE) is 8.10%.

The Cost of Debt of Titanium Oyj (TITAN.HE) is 15.35%.

	Range	Selected
Cost of equity	6.80% - 9.40%	8.10%
Tax rate	22.80% - 22.90%	22.85%
Cost of debt	4.00% - 26.70%	15.35%
WACC	6.7% - 9.6%	8.2%

WACC

TITAN.HE WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.7%	6.7%
Adjusted beta	0.71	0.85

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.80%	9.40%

Tax rate	22.80%	22.90%
Debt/Equity ratio	0.02	0.02
Cost of debt	4.00%	26.70%

After-tax WACC	6.7%	9.6%


Selected WACC	8.2%

TITAN.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 TITAN.HE:

cost_of_equity (8.10%) = risk_free_rate (2.95%) + equity_risk_premium (6.20%) * 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.