CELH
Celsius Holdings Inc
Price:  
34.46 
USD
Volume:  
6,021,593.00
United States | Beverages
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CELH WACC - Weighted Average Cost of Capital

The WACC of Celsius Holdings Inc (CELH) is 6.6%.

The Cost of Equity of Celsius Holdings Inc (CELH) is 6.60%.
The Cost of Debt of Celsius Holdings Inc (CELH) is 5.00%.

Range Selected
Cost of equity 5.80% - 7.40% 6.60%
Tax rate 22.50% - 23.80% 23.15%
Cost of debt 5.00% - 5.00% 5.00%
WACC 5.8% - 7.4% 6.6%
WACC

CELH WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.41 0.46
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.80% 7.40%
Tax rate 22.50% 23.80%
Debt/Equity ratio 0 0
Cost of debt 5.00% 5.00%
After-tax WACC 5.8% 7.4%
Selected WACC 6.6%

CELH'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 CELH:

cost_of_equity (6.60%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.41) + 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.