The WACC of Cbrain A/S (CBRAIN.CO) is 6.6%.
Range | Selected | |
Cost of equity | 5.5% - 7.8% | 6.65% |
Tax rate | 22.0% - 22.5% | 22.25% |
Cost of debt | 4.0% - 4.5% | 4.25% |
WACC | 5.5% - 7.7% | 6.6% |
Category | Low | High |
Long-term bond rate | 2.7% | 3.2% |
Equity market risk premium | 5.1% | 6.1% |
Adjusted beta | 0.55 | 0.67 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 5.5% | 7.8% |
Tax rate | 22.0% | 22.5% |
Debt/Equity ratio | 0.01 | 0.01 |
Cost of debt | 4.0% | 4.5% |
After-tax WACC | 5.5% | 7.7% |
Selected WACC | 6.6% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
CBRAIN.CO | Cbrain A/S | 0.01 | -0.06 | -0.06 |
ALFA.L | Alfa Financial Software Holdings PLC | 0.01 | 0.31 | 0.31 |
APTD.L | Aptitude Software Group PLC | 0.07 | -0.37 | -0.35 |
ARCANE.ST | Arcane Crypto AB | 0.04 | 1.78 | 1.73 |
DEV.L | Dev Clever Holdings PLC | 0 | -1.1 | -1.1 |
DOTD.L | dotDigital Group PLC | 0.01 | 0.94 | 0.93 |
LIME.ST | Lime Technologies AB (publ) | 0.05 | 0.34 | 0.33 |
LVC.WA | Livechat Software SA | 0 | 0.47 | 0.47 |
N4G.DE | Naga Group AG | 0.01 | 0.59 | 0.58 |
RIVER.OL | River Tech plc | 0.06 | 0.56 | 0.54 |
Low | High | |
Unlevered beta | 0.32 | 0.5 |
Relevered beta | 0.33 | 0.51 |
Adjusted relevered beta | 0.55 | 0.67 |
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 CBRAIN.CO:
cost_of_equity (6.65%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.55) + 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.