UTR1L.VS WACC - Weighted Average Cost of Capital

The WACC of Utenos Trikotazas AB (UTR1L.VS) is 5.8%.

The Cost of Equity of Utenos Trikotazas AB (UTR1L.VS) is 6.95%.

The Cost of Debt of Utenos Trikotazas AB (UTR1L.VS) is 5.55%.

	Range	Selected
Cost of equity	5.90% - 8.00%	6.95%
Tax rate	1.20% - 4.30%	2.75%
Cost of debt	4.90% - 6.20%	5.55%
WACC	5.1% - 6.5%	5.8%

WACC

UTR1L.VS WACC calculation

Category	Low	High

Long-term bond rate	3.4%	3.9%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.39	0.49

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.90%	8.00%

Tax rate	1.20%	4.30%
Debt/Equity ratio	2.89	2.89
Cost of debt	4.90%	6.20%

After-tax WACC	5.1%	6.5%


Selected WACC	5.8%

UTR1L.VS'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 UTR1L.VS:

cost_of_equity (6.95%) = risk_free_rate (3.65%) + equity_risk_premium (6.80%) * adjusted_beta (0.39) + 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.