UPSL.TA WACC - Weighted Average Cost of Capital

The WACC of Upsellon Brands Holdings Ltd (UPSL.TA) is 7.7%.

The Cost of Equity of Upsellon Brands Holdings Ltd (UPSL.TA) is 7.85%.

The Cost of Debt of Upsellon Brands Holdings Ltd (UPSL.TA) is 5.00%.

	Range	Selected
Cost of equity	6.90% - 8.80%	7.85%
Tax rate	1.70% - 1.90%	1.80%
Cost of debt	5.00% - 5.00%	5.00%
WACC	6.7% - 8.6%	7.7%

WACC

UPSL.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	5.6%	6.6%
Adjusted beta	0.36	0.45

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.90%	8.80%

Tax rate	1.70%	1.90%
Debt/Equity ratio	0.07	0.07
Cost of debt	5.00%	5.00%

After-tax WACC	6.7%	8.6%


Selected WACC	7.7%

UPSL.TA'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 UPSL.TA:

cost_of_equity (7.85%) = risk_free_rate (5.05%) + equity_risk_premium (6.10%) * adjusted_beta (0.36) + 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.