CBRAIN.CO
Cbrain A/S
Price:  
181 
DKK
Volume:  
11,337
Denmark | Software

CBRAIN.CO WACC - Weighted Average Cost of Capital

The WACC of Cbrain A/S (CBRAIN.CO) is 6.6%.

The Cost of Equity of Cbrain A/S (CBRAIN.CO) is 6.65%.
The Cost of Debt of Cbrain A/S (CBRAIN.CO) is 4.25%.

RangeSelected
Cost of equity5.5% - 7.8%6.65%
Tax rate22.0% - 22.5%22.25%
Cost of debt4.0% - 4.5%4.25%
WACC5.5% - 7.7%6.6%
WACC

CBRAIN.CO WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium5.1%6.1%
Adjusted beta0.550.67
Additional risk adjustments0.0%0.5%
Cost of equity5.5%7.8%
Tax rate22.0%22.5%
Debt/Equity ratio
0.010.01
Cost of debt4.0%4.5%
After-tax WACC5.5%7.7%
Selected WACC6.6%

CBRAIN.CO'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 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.