UPONOR.HE WACC - Weighted Average Cost of Capital
The WACC of Uponor Oyj (UPONOR.HE) is 8.3%.
| Range | Selected | |
| Cost of equity | 7.5% - 9.8% | 8.65% |
| Tax rate | 26.5% - 27.2% | 26.85% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 7.2% - 9.4% | 8.3% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 5.7% | 6.7% |
| Adjusted beta | 0.84 | 0.9 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.5% | 9.8% |
| Tax rate | 26.5% | 27.2% |
| Debt/Equity ratio | 0.07 | 0.07 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 7.2% | 9.4% |
| Selected WACC | 8.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| UPONOR.HE | Uponor Oyj | 0.07 | -0.15 | -0.15 |
| ARBN.SW | Arbonia AG | 1.02 | 0.72 | 0.41 |
| INWI.ST | Inwido AB (publ) | 0.14 | 0.85 | 0.77 |
| LIAB.ST | Lindab International AB | 0.29 | 0.88 | 0.72 |
| MTRS.ST | Munters Group AB | 0.31 | 1.08 | 0.88 |
| SWTQ.SW | Schweiter Technologies AG | 0.2 | 1.41 | 1.23 |
| SYSR.ST | Systemair AB | 0.07 | 0.76 | 0.73 |
| TYMN.L | Tyman PLC | 0.3 | 2.04 | 1.67 |
| VIB3.DE | Villeroy & Boch AG | 0.27 | 0.44 | 0.37 |
| ZEHN.SW | Zehnder Group AG | 0.1 | 1.26 | 1.17 |
| Low | High | |
| Unlevered beta | 0.73 | 0.81 |
| Relevered beta | 0.76 | 0.85 |
| Adjusted relevered beta | 0.84 | 0.9 |
UPONOR.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 UPONOR.HE:
cost_of_equity (8.65%) = risk_free_rate (2.95%) + equity_risk_premium (6.20%) * adjusted_beta (0.84) + 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.