VIAFIN.HE WACC - Weighted Average Cost of Capital

The WACC of Viafin Service Oyj (VIAFIN.HE) is 7.5%.

The Cost of Equity of Viafin Service Oyj (VIAFIN.HE) is 7.20%.

The Cost of Debt of Viafin Service Oyj (VIAFIN.HE) is 16.95%.

	Range	Selected
Cost of equity	6.00% - 8.40%	7.20%
Tax rate	20.60% - 20.70%	20.65%
Cost of debt	4.00% - 29.90%	16.95%
WACC	5.9% - 9.0%	7.5%

WACC

VIAFIN.HE WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.7%	6.7%
Adjusted beta	0.58	0.7

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.00%	8.40%

Tax rate	20.60%	20.70%
Debt/Equity ratio	0.04	0.04
Cost of debt	4.00%	29.90%

After-tax WACC	5.9%	9.0%


Selected WACC	7.5%

VIAFIN.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 VIAFIN.HE:

cost_of_equity (7.20%) = risk_free_rate (2.95%) + equity_risk_premium (6.20%) * adjusted_beta (0.58) + 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.