TULAV.HE WACC - Weighted Average Cost of Capital

The WACC of Tulikivi Oyj (TULAV.HE) is 5.8%.

The Cost of Equity of Tulikivi Oyj (TULAV.HE) is 6.90%.

The Cost of Debt of Tulikivi Oyj (TULAV.HE) is 4.65%.

	Range	Selected
Cost of equity	5.30% - 8.50%	6.90%
Tax rate	19.90% - 21.50%	20.70%
Cost of debt	4.50% - 4.80%	4.65%
WACC	4.7% - 7.0%	5.8%

WACC

TULAV.HE WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.7%	6.7%
Adjusted beta	0.44	0.71

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.30%	8.50%

Tax rate	19.90%	21.50%
Debt/Equity ratio	0.49	0.49
Cost of debt	4.50%	4.80%

After-tax WACC	4.7%	7.0%


Selected WACC	5.8%

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 (6.90%) = 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.