CHRO.ST
ChromoGenics AB
Price:  
9.78 
SEK
Volume:  
10,614
Sweden | Building Products

CHRO.ST WACC - Weighted Average Cost of Capital

The WACC of ChromoGenics AB (CHRO.ST) is 4.7%.

The Cost of Equity of ChromoGenics AB (CHRO.ST) is 5.55%.
The Cost of Debt of ChromoGenics AB (CHRO.ST) is 5%.

RangeSelected
Cost of equity4.4% - 6.7%5.55%
Tax rate20.6% - 20.9%20.75%
Cost of debt5.0% - 5.0%5%
WACC4.2% - 5.3%4.7%
WACC

CHRO.ST WACC calculation

CategoryLowHigh
Long-term bond rate2.5%3.0%
Equity market risk premium5.1%6.1%
Adjusted beta0.360.53
Additional risk adjustments0.0%0.5%
Cost of equity4.4%6.7%
Tax rate20.6%20.9%
Debt/Equity ratio
1.031.03
Cost of debt5.0%5.0%
After-tax WACC4.2%5.3%
Selected WACC4.7%

CHRO.ST'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 CHRO.ST:

cost_of_equity (5.55%) = risk_free_rate (2.75%) + equity_risk_premium (5.60%) * adjusted_beta (0.36) + 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.