TOKMAN.HE WACC - Weighted Average Cost of Capital

The WACC of Tokmanni Group Corp (TOKMAN.HE) is 5.8%.

The Cost of Equity of Tokmanni Group Corp (TOKMAN.HE) is 11.15%.

The Cost of Debt of Tokmanni Group Corp (TOKMAN.HE) is 4.25%.

	Range	Selected
Cost of equity	9.60% - 12.70%	11.15%
Tax rate	20.20% - 20.20%	20.20%
Cost of debt	4.00% - 4.50%	4.25%
WACC	5.1% - 6.4%	5.8%

WACC

TOKMAN.HE WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.7%	6.7%
Adjusted beta	1.2	1.34

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.60%	12.70%

Tax rate	20.20%	20.20%
Debt/Equity ratio	2.27	2.27
Cost of debt	4.00%	4.50%

After-tax WACC	5.1%	6.4%


Selected WACC	5.8%

TOKMAN.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 TOKMAN.HE:

cost_of_equity (11.15%) = risk_free_rate (2.95%) + equity_risk_premium (6.20%) * adjusted_beta (1.2) + 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.