TULAV.HE WACC - Weighted Average Cost of Capital
The WACC of Tulikivi Oyj (TULAV.HE) is 6.0%.
| Range | Selected | |
| Cost of equity | 5.2% - 8.2% | 6.7% |
| Tax rate | 19.9% - 21.5% | 20.7% |
| Cost of debt | 4.8% - 6.3% | 5.55% |
| WACC | 4.8% - 7.2% | 6.0% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 5.7% | 6.7% |
| Adjusted beta | 0.44 | 0.67 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.2% | 8.2% |
| Tax rate | 19.9% | 21.5% |
| Debt/Equity ratio | 0.47 | 0.47 |
| Cost of debt | 4.8% | 6.3% |
| After-tax WACC | 4.8% | 7.2% |
| Selected WACC | 6.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| TULAV.HE | Tulikivi Oyj | 0.47 | 0.66 | 0.48 |
| ALOBR.PA | Ober SA | 0.82 | 0.92 | 0.55 |
| ECC B.ST | Ecoclime Group AB | 0.71 | -0.61 | -0.39 |
| FORMT.IS | Formet Celik Kapi Sanayi ve Ticaret AS | 0.21 | 0.98 | 0.84 |
| HSM.L | Samuel Heath and Sons PLC | 0.01 | -0.08 | -0.08 |
| MMA.WA | Malkowski Martech SA | 0.33 | 0.32 | 0.25 |
| SCK.MI | Sciuker Frames SpA | 5.87 | 1.64 | 0.29 |
| TON.L | Titon Holdings PLC | 0.05 | -0.45 | -0.43 |
| TRR.WA | Termo Rex SA | 0.03 | -0.35 | -0.34 |
| USAK.IS | Usak Seramik Sanayi AS | 0.63 | 1.12 | 0.75 |
| Low | High | |
| Unlevered beta | 0.12 | 0.37 |
| Relevered beta | 0.16 | 0.51 |
| Adjusted relevered beta | 0.44 | 0.67 |
TULAV.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 TULAV.HE:
cost_of_equity (6.70%) = risk_free_rate (2.95%) + equity_risk_premium (6.20%) * adjusted_beta (0.44) + 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.