TRH1V.HE WACC - Weighted Average Cost of Capital
The WACC of Trainers' House Oyj (TRH1V.HE) is 7.3%.
| Range | Selected | |
| Cost of equity | 6.3% - 9.0% | 7.65% |
| Tax rate | 4.4% - 13.7% | 9.05% |
| Cost of debt | 4.0% - 6.3% | 5.15% |
| WACC | 6.0% - 8.6% | 7.3% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 5.7% | 6.7% |
| Adjusted beta | 0.63 | 0.79 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.3% | 9.0% |
| Tax rate | 4.4% | 13.7% |
| Debt/Equity ratio | 0.14 | 0.14 |
| Cost of debt | 4.0% | 6.3% |
| After-tax WACC | 6.0% | 8.6% |
| Selected WACC | 7.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| TRH1V.HE | Trainers' House Oyj | 0.14 | -0.31 | -0.27 |
| AALLON.HE | Aallon Group Oyj | 0.18 | 0.57 | 0.49 |
| AQSG.L | Aquila Services Group PLC | 0.04 | 0.16 | 0.15 |
| AUK.L | Aukett Swanke Group PLC | 0.9 | 0.44 | 0.24 |
| BTG.WA | Blue Tax Group SA | 0.01 | 1.07 | 1.06 |
| CAPAC.ST | Capacent Holding AB (publ) | 0.04 | 1.3 | 1.25 |
| CIRC.MI | Circle SpA | 0.01 | 0.61 | 0.61 |
| DGA.WA | DGA SA | 0 | 0.13 | 0.13 |
| ECA.WA | Uhy Eca SA | 0.08 | 0.66 | 0.61 |
| IDEAS.IS | Idealist Danismanlik AS | 0 | 0.7 | 0.7 |
| Low | High | |
| Unlevered beta | 0.39 | 0.61 |
| Relevered beta | 0.45 | 0.69 |
| Adjusted relevered beta | 0.63 | 0.79 |
TRH1V.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 TRH1V.HE:
cost_of_equity (7.65%) = risk_free_rate (2.95%) + equity_risk_premium (6.20%) * adjusted_beta (0.63) + 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.