VALOE.HE
Valoe Oyj
Price:  
0.97 
EUR
Volume:  
31,770
Finland | Semiconductors & Semiconductor Equipment

VALOE.HE WACC - Weighted Average Cost of Capital

The WACC of Valoe Oyj (VALOE.HE) is 5.4%.

The Cost of Equity of Valoe Oyj (VALOE.HE) is 11.3%.
The Cost of Debt of Valoe Oyj (VALOE.HE) is 5.5%.

RangeSelected
Cost of equity7.1% - 15.5%11.3%
Tax rate20.0% - 20.0%20%
Cost of debt4.0% - 7.0%5.5%
WACC3.8% - 7.0%5.4%
WACC

VALOE.HE WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium5.7%6.7%
Adjusted beta0.771.76
Additional risk adjustments0.0%0.5%
Cost of equity7.1%15.5%
Tax rate20.0%20.0%
Debt/Equity ratio
5.835.83
Cost of debt4.0%7.0%
After-tax WACC3.8%7.0%
Selected WACC5.4%

VALOE.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 VALOE.HE:

cost_of_equity (11.30%) = risk_free_rate (2.95%) + equity_risk_premium (6.20%) * adjusted_beta (0.77) + 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.