CC
Chemours Co
Price:  
10.73 
USD
Volume:  
3,297,767.00
United States | Chemicals
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CC WACC - Weighted Average Cost of Capital

The WACC of Chemours Co (CC) is 7.0%.

The Cost of Equity of Chemours Co (CC) is 10.75%.
The Cost of Debt of Chemours Co (CC) is 7.25%.

Range Selected
Cost of equity 8.90% - 12.60% 10.75%
Tax rate 22.20% - 23.60% 22.90%
Cost of debt 5.40% - 9.10% 7.25%
WACC 5.5% - 8.5% 7.0%
WACC

CC WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.1 1.37
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.90% 12.60%
Tax rate 22.20% 23.60%
Debt/Equity ratio 2.56 2.56
Cost of debt 5.40% 9.10%
After-tax WACC 5.5% 8.5%
Selected WACC 7.0%

CC'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 CC:

cost_of_equity (10.75%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.1) + 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.