VIAFIN.HE
Viafin Service Oyj
Price:  
19.50 
EUR
Volume:  
1,001.00
Finland | Commercial Services & Supplies
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VIAFIN.HE WACC - Weighted Average Cost of Capital

The WACC of Viafin Service Oyj (VIAFIN.HE) is 7.1%.

The Cost of Equity of Viafin Service Oyj (VIAFIN.HE) is 6.90%.
The Cost of Debt of Viafin Service Oyj (VIAFIN.HE) is 16.95%.

Range Selected
Cost of equity 5.40% - 8.40% 6.90%
Tax rate 20.60% - 20.70% 20.65%
Cost of debt 4.00% - 29.90% 16.95%
WACC 5.3% - 8.9% 7.1%
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 0.46 0.69
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.40% 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 5.3% 8.9%
Selected WACC 7.1%

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 (6.90%) = risk_free_rate (2.95%) + equity_risk_premium (6.20%) * adjusted_beta (0.46) + 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.