Finnair Plc (FIA1S.HE) WACC Analysis

As of June 14, 2025, Finnair Plc (FIA1S.HE) carries a Weighted Average Cost of Capital (WACC) of 4.1%. WACC reflects the blended rate Finnair Plc must pay to both equity and debt holders.

Within that, the cost of equity is 5.2%, the cost of debt is 4.0%, and the effective tax rate is 20.1%.

Breakdown of WACC Components

• Long-term bond rate: 2.7% – 3.2%
• Equity market risk premium: 5.7% – 6.7%
• Adjusted beta: 0.44 – 0.64
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 3.35

What It Means for Investors

With a selected WACC of 4.1%, Finnair Plc must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.