UTR1L.VS WACC - Weighted Average Cost of Capital

The WACC of Utenos Trikotazas AB (UTR1L.VS) is 7.6%.

The Cost of Equity of Utenos Trikotazas AB (UTR1L.VS) is 13.85%.

The Cost of Debt of Utenos Trikotazas AB (UTR1L.VS) is 5.85%.

	Range	Selected
Cost of equity	7.80% - 19.90%	13.85%
Tax rate	1.20% - 4.30%	2.75%
Cost of debt	4.70% - 7.00%	5.85%
WACC	5.4% - 9.8%	7.6%

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	0.68	2.11

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.80%	19.90%

Tax rate	1.20%	4.30%
Debt/Equity ratio	3.2	3.2
Cost of debt	4.70%	7.00%

After-tax WACC	5.4%	9.8%


Selected WACC	7.6%

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 (13.85%) = risk_free_rate (3.65%) + equity_risk_premium (6.80%) * adjusted_beta (0.68) + 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.