CAC
Camden National Corp
Price:  
39.92 
USD
Volume:  
41,194.00
United States | Banks
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CAC WACC - Weighted Average Cost of Capital

The WACC of Camden National Corp (CAC) is 7.8%.

The Cost of Equity of Camden National Corp (CAC) is 9.10%.
The Cost of Debt of Camden National Corp (CAC) is 5.00%.

Range Selected
Cost of equity 7.80% - 10.40% 9.10%
Tax rate 19.80% - 20.10% 19.95%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.9% - 8.8% 7.8%
WACC

CAC WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.86 0.99
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.80% 10.40%
Tax rate 19.80% 20.10%
Debt/Equity ratio 0.34 0.34
Cost of debt 5.00% 5.00%
After-tax WACC 6.9% 8.8%
Selected WACC 7.8%

CAC'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 CAC:

cost_of_equity (9.10%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.86) + 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.