Celanese WACC - Weighted Average Cost of Capital

The WACC of Celanese Corp (CE) is 6.3%.

The Cost of Equity of Celanese Corp (CE) is 11.50%.

The Cost of Debt of Celanese Corp (CE) is 6.60%.

	Range	Selected
Cost of equity	9.60% - 13.40%	11.50%
Tax rate	26.50% - 41.10%	33.80%
Cost of debt	4.10% - 9.10%	6.60%
WACC	4.9% - 7.7%	6.3%

WACC

Celanese WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	4.6%	5.6%
Adjusted beta	1.26	1.52

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.60%	13.40%

Tax rate	26.50%	41.10%
Debt/Equity ratio	2.45	2.45
Cost of debt	4.10%	9.10%

After-tax WACC	4.9%	7.7%


Selected WACC	6.3%

Celanese'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 Celanese:

cost_of_equity (11.50%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.26) + 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.