CHPT
ChargePoint Holdings Inc
Price:  
0.62 
USD
Volume:  
8,141,726.00
United States | Electrical Equipment
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CHPT WACC - Weighted Average Cost of Capital

The WACC of ChargePoint Holdings Inc (CHPT) is 9.6%.

The Cost of Equity of ChargePoint Holdings Inc (CHPT) is 12.30%.
The Cost of Debt of ChargePoint Holdings Inc (CHPT) is 7.00%.

Range Selected
Cost of equity 10.80% - 13.80% 12.30%
Tax rate 0.40% - 1.00% 0.70%
Cost of debt 7.00% - 7.00% 7.00%
WACC 8.8% - 10.3% 9.6%
WACC

CHPT WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.5 1.6
Additional risk adjustments 0.0% 0.5%
Cost of equity 10.80% 13.80%
Tax rate 0.40% 1.00%
Debt/Equity ratio 1.05 1.05
Cost of debt 7.00% 7.00%
After-tax WACC 8.8% 10.3%
Selected WACC 9.6%

CHPT'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 CHPT:

cost_of_equity (12.30%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.5) + 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.