Olvi OyjLTS:0FHS 94 WACC % is 2.15% as of Jul. 02, 2026, which is 9% below its 10-year median of 2.36. GuruFocus rates LTS:0FHS with a GF Score™ of 94/100 and a GF Value™ of €34.11 (Fairly Valued). The stock has 3 warning signs investors should review. Among 215 Beverages - Alcoholic companies, Olvi Oyj ranks better than 71.16% on this metric.
As of today (2026-07-02), Olvi Oyj's weighted average cost of capital is 2.15%%. Olvi Oyj's ROIC % is 16.08% (calculated using TTM income statement data).
Olvi Oyj generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
For a comprehensive WACC calculation, please access the WACC Calculator.
Olvi Oyj (LTS:0FHS) WACC % Explanation
Because it costs money to raise capital. A firm that generates higher ROIC % than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Olvi Oyj's weighted average cost of capital is 2.15%%. Olvi Oyj's ROIC % is 16.08% (calculated using TTM income statement data).
Olvi Oyj generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
Be Aware
1. GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding latest one-year quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together.
For companies that report quarterly, GuruFocus combines all of the most recent year's quarterly debt data from the beginning of the year to the year-end and calculates the average.
For companies that report semi-annually, GuruFocus combines all of the most recent year's semi-annual debt data from the start of the year to the year-end and calculates the average.
For companies that report annually, GuruFocus combines the beginning and ending annual debt data from the most recent year and then calculates the average.
2. The WACC formula discussed above does not include Preferred Stock. Please adjust if preferred stock is considered.
3. (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
4. GuruFocus uses the latest TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.
Related Terms
Olvi Oyj WACC % Historical Data
* Premium members only.
The historical data trend for Olvi Oyj's WACC % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Beverages - Brewers subindustry, Olvi Oyj's WACC %, along with its competitors' market caps and WACC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Olvi Oyj WACC % vs Beverages - Alcoholic Industry
For the Beverages - Alcoholic industry and Consumer Defensive sector, Olvi Oyj's WACC % distribution charts can be found below:
* The bar in red indicates where Olvi Oyj's WACC % falls into.
The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. The WACC is commonly referred to as the firm's cost of capital. Generally speaking, a company's assets are financed by debt and equity. WACC is the average of the costs of these sources of financing, each of which is weighted by its respective use in the given situation. By taking a weighted average, we can see how much interest the company has to pay for every dollar it finances.
WACC
=
E
/
(E + D)
*
Cost of Equity
+
D
/
(E + D)
*
Cost of Debt
*
(1 - Tax Rate)
1. Weights:
Generally speaking, a company's assets are financed by debt and equity. We need to calculate the weight of equity and the weight of debt.
The market value of equity (E) is also called "Market Cap". As of today, Olvi Oyj's market capitalization (E) is €657.226 Mil.
The market value of debt is typically difficult to calculate, therefore, GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding the latest one-year quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Mar. 2026, Olvi Oyj's latest one-year quarterly average Book Value of Debt (D) is €42.623 Mil.
a) weight of equity = E / (E + D) = 657.226 / (657.226 + 42.623) = 0.9391
b) weight of debt = D / (E + D) = 42.623 / (657.226 + 42.623) = 0.0609
2. Cost of Equity:
GuruFocus uses Capital Asset Pricing Model (CAPM) to calculate the required rate of return. The formula is:
Cost of Equity = Risk-Free Rate of Return + Beta of Asset * (Expected Return of the Market - Risk-Free Rate of Return)
a) GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate. It is updated daily. The current risk-free rate is 3.3991%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default.
b) Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. Olvi Oyj's beta is -0.2375.
c) (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
Cost of Equity = 3.3991% + -0.2375 * 6% = 1.9741%
3. Cost of Debt:
GuruFocus uses latest TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.
As of Mar. 2026, Olvi Oyj's interest expense (positive number) was €2.758 Mil. Its total Book Value of Debt (D) is €42.623 Mil.
Cost of Debt = 2.758 / 42.623 = 6.4707%.
4. Multiply by one minus TTM Tax Rate:
GuruFocus uses the most recent TTM Tax Expense divided by the most recent TTM Pre-Tax Income to calculate the tax rate. The calculated TTM tax rate is limited to between 0% and 100%. If the calculated tax rate is higher than 100%, it is set to 100%. If the calculated tax rate is less than 0%, it is set to 0%.
The latest calculated TTM Tax Rate = 19.046 / 79.987 = 23.81%.
Olvi Oyj's Weighted Average Cost Of Capital (WACC) for Today is calculated as:
WACC
=
E / (E + D)
*
Cost of Equity
+
D / (E + D)
*
Cost of Debt
*
(1 - Tax Rate)
=
0.9391
*
1.9741%
+
0.0609
*
6.4707%
*
(1 - 23.81%)
=
2.15%
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Olvi Oyj (LTS:0FHS) has a WACC % of 2.15% as of Jul. 02, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Olvi Oyj and its competitors. This is near median its historical median of 2.36. Over the past decade, Olvi Oyj's WACC % has ranged from 0.55 to 6.88. According to the industry distribution chart, Olvi Oyj ranks #62 out of 215 companies in the Beverages - Alcoholic industry, placing it in the top 28.8%.
Is Olvi Oyj's WACC % too high?
Olvi Oyj's current WACC % of 2.15% is near median its 10-year median of 2.36. Over the past 10 years, this metric has ranged from a low of 0.55 to a high of 6.88. The Beverages - Alcoholic industry median WACC % is 7.80. Olvi Oyj's value of 2.15% is 72.4% below this industry median. Based on the distribution chart, Olvi Oyj ranks #62 out of 215 companies in the Beverages - Alcoholic industry, which is above the industry midpoint. Overall, Olvi Oyj has a GF Score™ of 94/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Olvi Oyj's WACC % compare to BUD and STZ?
According to the Beverages - Alcoholic industry distribution chart, Olvi Oyj ranks #62 out of 215 companies for WACC %. This puts Olvi Oyj in the upper half of its industry. The industry median WACC % is 7.80. Olvi Oyj's value of 2.15% is 72.4% below this benchmark. Historically, Olvi Oyj's own WACC % has ranged from 0.55 to 6.88 over the past decade. While the company's 10-year median is 2.36 vs. the industry median of 7.80, Olvi Oyj has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good WACC % for a Beverages - Alcoholic company?
The median WACC % among Beverages - Alcoholic companies is 7.80, based on 215 companies in the industry. Companies in the top quartile (top 25%) have a WACC % significantly above this median, while those in the bottom quartile fall well below. However, WACC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Olvi Oyj's current WACC % of 2.15% is 72.4% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high WACC % mean?
A high WACC % can signal that a stock is expensive relative to its fundamentals. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Olvi Oyj and its competitors. For the Beverages - Alcoholic industry, the median WACC % is 7.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Olvi Oyj's current WACC % is 2.15%, which is near median its own 10-year median of 2.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Olvi Oyj stock overvalued right now?
Based on GuruFocus' analysis, Olvi Oyj (LTS:0FHS) is currently considered Fairly Valued. The stock's GF Value™ is €34.11, compared to a current price of €31.15 — trading 8.7% below its estimated fair value. The current WACC % is 2.15%, which is near median its 10-year median of 2.36 and 72.4% below the Beverages - Alcoholic industry median of 7.80. Olvi Oyj's overall GF Score™ is 94/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is WACC % calculated?
WACC % is calculated from a company's financial statements. For Olvi Oyj (LTS:0FHS), the current WACC % is 2.15% as of Jul. 02, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Olvi Oyj (LTS:0FHS) Overvalued in 2026?
Based on GuruFocus' analysis, Olvi Oyj stock appears to be undervalued.
The current stock price of €31.15 is trading 8.7% below its estimated GF Value™ of €34.11.
GuruFocus considers Olvi Oyj to be Fairly Valued.
Key valuation signals for LTS:0FHS:
WACC %: 2.15% (near median its 10-year median of 2.36)
GF Value™: €34.11 vs. price of €31.15 (8.7% below fair value)
Industry Position: 72.4% below the Beverages - Alcoholic median (#62 of 215)
No single metric tells the full story. See the LTS:0FHS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Olvi Oyj is an international beverage group that produces alcoholic and nonalcoholic products in several categories. Its product portfolio includes beers, waters, ciders, long drinks, soft drinks, wines, juices, sports drinks, wellness drinks, energy drinks, and distillates. These products are offered under brands like A.Le Coq, Sandels, and OLVI, among others. Olvi generates the majority of its revenue from the sale of beers. The Group's operations are divided into three segments based on the geographical markets in which it operates, including Finland, the Baltic Sea region, and Belarus. The majority of its revenue is generated from the Baltic Sea region.
94GF Score
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