CE.ST WACC - Weighted Average Cost of Capital

The WACC of Cortus Energy AB (CE.ST) is 12.4%.

The Cost of Equity of Cortus Energy AB (CE.ST) is 7.60%.

The Cost of Debt of Cortus Energy AB (CE.ST) is 18.65%.

	Range	Selected
Cost of equity	6.00% - 9.20%	7.60%
Tax rate	20.60% - 20.90%	20.75%
Cost of debt	7.00% - 30.30%	18.65%
WACC	5.7% - 19.1%	12.4%

WACC

CE.ST WACC calculation

Category	Low	High

Long-term bond rate	2.5%	3.0%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.68	0.94

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.00%	9.20%

Tax rate	20.60%	20.90%
Debt/Equity ratio	2.04	2.04
Cost of debt	7.00%	30.30%

After-tax WACC	5.7%	19.1%


Selected WACC	12.4%

CE.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 CE.ST:

cost_of_equity (7.60%) = risk_free_rate (2.75%) + equity_risk_premium (5.60%) * adjusted_beta (0.68) + 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.