CEIX
CONSOL Energy Inc
Price:  
99.61 
USD
Volume:  
1,681,804.00
United States | Oil, Gas & Consumable Fuels
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CEIX WACC - Weighted Average Cost of Capital

The WACC of CONSOL Energy Inc (CEIX) is 9.8%.

The Cost of Equity of CONSOL Energy Inc (CEIX) is 10.05%.
The Cost of Debt of CONSOL Energy Inc (CEIX) is 6.05%.

Range Selected
Cost of equity 8.60% - 11.50% 10.05%
Tax rate 11.20% - 16.60% 13.90%
Cost of debt 4.50% - 7.60% 6.05%
WACC 8.3% - 11.2% 9.8%
WACC

CEIX WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.02 1.18
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.60% 11.50%
Tax rate 11.20% 16.60%
Debt/Equity ratio 0.05 0.05
Cost of debt 4.50% 7.60%
After-tax WACC 8.3% 11.2%
Selected WACC 9.8%

CEIX'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 CEIX:

cost_of_equity (10.05%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.02) + 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.