CATE.ST WACC - Weighted Average Cost of Capital
The WACC of Catena AB (CATE.ST) is 5.1%.
| Range | Selected | |
| Cost of equity | 5.2% - 7.1% | 6.15% |
| Tax rate | 19.9% - 20.3% | 20.1% |
| Cost of debt | 4.0% - 4.7% | 4.35% |
| WACC | 4.4% - 5.8% | 5.1% |
| Category | Low | High |
| Long-term bond rate | 2.5% | 3.0% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.53 | 0.58 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.2% | 7.1% |
| Tax rate | 19.9% | 20.3% |
| Debt/Equity ratio | 0.62 | 0.62 |
| Cost of debt | 4.0% | 4.7% |
| After-tax WACC | 4.4% | 5.8% |
| Selected WACC | 5.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CATE.ST | Catena AB | 0.62 | 0.34 | 0.23 |
| CLI.L | CLS Holdings PLC | 4.07 | 1.15 | 0.27 |
| FPAR A.ST | FastPartner AB | 1.56 | 0.32 | 0.14 |
| ISN.SW | Intershop Holding AG | 0.39 | 0.4 | 0.3 |
| JDAN.CO | Jeudan A/S | 1.93 | 0.03 | 0.01 |
| MOBN.SW | Mobimo Holding AG | 0.72 | 0.38 | 0.24 |
| NYF.ST | Nyfosa AB | 1.2 | 0.27 | 0.14 |
| PLAZ B.ST | Platzer Fastigheter Holding AB (publ) | 2.06 | 0.23 | 0.09 |
| SPI.VI | S Immo AG | 1.3 | 0.6 | 0.29 |
| SRE.L | Sirius Real Estate Ltd | 0.59 | 0.96 | 0.65 |
| Low | High | |
| Unlevered beta | 0.19 | 0.25 |
| Relevered beta | 0.3 | 0.37 |
| Adjusted relevered beta | 0.53 | 0.58 |
CATE.ST'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 CATE.ST:
cost_of_equity (6.15%) = risk_free_rate (2.75%) + equity_risk_premium (5.60%) * 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.