CAMB.BR
Campine NV
Price:  
240.00 
EUR
Volume:  
3,476.00
Belgium | Metals & Mining
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CAMB.BR WACC - Weighted Average Cost of Capital

The WACC of Campine NV (CAMB.BR) is 6.9%.

The Cost of Equity of Campine NV (CAMB.BR) is 7.10%.
The Cost of Debt of Campine NV (CAMB.BR) is 4.95%.

Range Selected
Cost of equity 6.00% - 8.20% 7.10%
Tax rate 24.50% - 25.00% 24.75%
Cost of debt 4.00% - 5.90% 4.95%
WACC 5.9% - 8.0% 6.9%
WACC

CAMB.BR WACC calculation

Category Low High
Long-term bond rate 2.9% 3.4%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.53 0.62
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.00% 8.20%
Tax rate 24.50% 25.00%
Debt/Equity ratio 0.05 0.05
Cost of debt 4.00% 5.90%
After-tax WACC 5.9% 8.0%
Selected WACC 6.9%

CAMB.BR'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 CAMB.BR:

cost_of_equity (7.10%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.53) + 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.