WKL.AS WACC - Weighted Average Cost of Capital

The WACC of Wolters Kluwer NV (WKL.AS) is 7.2%.

The Cost of Equity of Wolters Kluwer NV (WKL.AS) is 7.65%.

The Cost of Debt of Wolters Kluwer NV (WKL.AS) is 4.25%.

	Range	Selected
Cost of equity	6.60% - 8.70%	7.65%
Tax rate	21.70% - 22.00%	21.85%
Cost of debt	4.00% - 4.50%	4.25%
WACC	6.3% - 8.2%	7.2%

WACC

WKL.AS WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.8	0.84

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.60%	8.70%

Tax rate	21.70%	22.00%
Debt/Equity ratio	0.11	0.11
Cost of debt	4.00%	4.50%

After-tax WACC	6.3%	8.2%


Selected WACC	7.2%

WKL.AS'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 WKL.AS:

cost_of_equity (7.65%) = risk_free_rate (2.85%) + equity_risk_premium (5.60%) * adjusted_beta (0.8) + 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.