CHEMM.CO WACC - Weighted Average Cost of Capital

The WACC of Chemometec A/S (CHEMM.CO) is 7.7%.

The Cost of Equity of Chemometec A/S (CHEMM.CO) is 7.70%.

The Cost of Debt of Chemometec A/S (CHEMM.CO) is 17.40%.

	Range	Selected
Cost of equity	6.20% - 9.20%	7.70%
Tax rate	21.90% - 22.20%	22.05%
Cost of debt	4.00% - 30.80%	17.40%
WACC	6.2% - 9.2%	7.7%

WACC

CHEMM.CO WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.67	0.89

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.20%	9.20%

Tax rate	21.90%	22.20%
Debt/Equity ratio	0	0
Cost of debt	4.00%	30.80%

After-tax WACC	6.2%	9.2%


Selected WACC	7.7%

CHEMM.CO'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 CHEMM.CO:

cost_of_equity (7.70%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.67) + 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.