VLP1L.VS
Vilkyskiu Pienine AB
Price:  
11.15 
EUR
Volume:  
337
Lithuania | Food Products

VLP1L.VS WACC - Weighted Average Cost of Capital

The WACC of Vilkyskiu Pienine AB (VLP1L.VS) is 9.4%.

The Cost of Equity of Vilkyskiu Pienine AB (VLP1L.VS) is 11.05%.
The Cost of Debt of Vilkyskiu Pienine AB (VLP1L.VS) is 4.25%.

RangeSelected
Cost of equity9.4% - 12.7%11.05%
Tax rate9.2% - 10.5%9.85%
Cost of debt4.0% - 4.5%4.25%
WACC8.1% - 10.7%9.4%
WACC

VLP1L.VS WACC calculation

CategoryLowHigh
Long-term bond rate3.4%3.9%
Equity market risk premium6.3%7.3%
Adjusted beta0.941.12
Additional risk adjustments0.0%0.5%
Cost of equity9.4%12.7%
Tax rate9.2%10.5%
Debt/Equity ratio
0.290.29
Cost of debt4.0%4.5%
After-tax WACC8.1%10.7%
Selected WACC9.4%

VLP1L.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 VLP1L.VS:

cost_of_equity (11.05%) = risk_free_rate (3.65%) + equity_risk_premium (6.80%) * adjusted_beta (0.94) + 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.