VBL1L.VS WACC - Weighted Average Cost of Capital

The WACC of Vilniaus Baldai AB (VBL1L.VS) is 8.1%.

The Cost of Equity of Vilniaus Baldai AB (VBL1L.VS) is 10.90%.

The Cost of Debt of Vilniaus Baldai AB (VBL1L.VS) is 5.05%.

	Range	Selected
Cost of equity	8.60% - 13.20%	10.90%
Tax rate	16.70% - 22.10%	19.40%
Cost of debt	4.90% - 5.20%	5.05%
WACC	6.7% - 9.4%	8.1%

WACC

VBL1L.VS WACC calculation

Category	Low	High

Long-term bond rate	3.4%	3.9%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.81	1.19

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.60%	13.20%

Tax rate	16.70%	22.10%
Debt/Equity ratio	0.71	0.71
Cost of debt	4.90%	5.20%

After-tax WACC	6.7%	9.4%


Selected WACC	8.1%

VBL1L.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 VBL1L.VS:

cost_of_equity (10.90%) = risk_free_rate (3.65%) + equity_risk_premium (6.80%) * adjusted_beta (0.81) + 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.