UIE.CO
United International Enterprises Ltd
Price:  
304 
DKK
Volume:  
6,336
Bahamas | Food Products

UIE.CO WACC - Weighted Average Cost of Capital

The WACC of United International Enterprises Ltd (UIE.CO) is 7.3%.

The Cost of Equity of United International Enterprises Ltd (UIE.CO) is 7.3%.
The Cost of Debt of United International Enterprises Ltd (UIE.CO) is 5%.

RangeSelected
Cost of equity6.1% - 8.5%7.3%
Tax rate19.2% - 21.4%20.3%
Cost of debt5.0% - 5.0%5%
WACC6.1% - 8.5%7.3%
WACC

UIE.CO WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium5.1%6.1%
Adjusted beta0.660.78
Additional risk adjustments0.0%0.5%
Cost of equity6.1%8.5%
Tax rate19.2%21.4%
Debt/Equity ratio
00
Cost of debt5.0%5.0%
After-tax WACC6.1%8.5%
Selected WACC7.3%

UIE.CO'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 UIE.CO:

cost_of_equity (7.30%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.66) + 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.