The WACC of ChromoGenics AB (CHRO.ST) is 4.7%.
Range | Selected | |
Cost of equity | 4.4% - 6.7% | 5.55% |
Tax rate | 20.6% - 20.9% | 20.75% |
Cost of debt | 5.0% - 5.0% | 5% |
WACC | 4.2% - 5.3% | 4.7% |
Category | Low | High |
Long-term bond rate | 2.5% | 3.0% |
Equity market risk premium | 5.1% | 6.1% |
Adjusted beta | 0.36 | 0.53 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 4.4% | 6.7% |
Tax rate | 20.6% | 20.9% |
Debt/Equity ratio | 1.03 | 1.03 |
Cost of debt | 5.0% | 5.0% |
After-tax WACC | 4.2% | 5.3% |
Selected WACC | 4.7% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
CHRO.ST | ChromoGenics AB | 1.03 | -1.02 | -0.56 |
ALX.AS | Alumexx NV | 2.31 | 0.45 | 0.16 |
ECC B.ST | Ecoclime Group AB | 0.71 | -0.61 | -0.39 |
KBD.WA | Korporacja Budowlana Dom SA | 5.59 | 0.09 | 0.02 |
MER.WA | Mera SA | 0.74 | 0.26 | 0.16 |
MMA.WA | Malkowski Martech SA | 0.33 | 0.32 | 0.25 |
PJP.WA | PJP Makrum SA | 0.96 | 0.05 | 0.03 |
POLY.ST | PolyPlank AB (publ) | 0.52 | 0.32 | 0.22 |
TON.L | Titon Holdings PLC | 0.05 | -0.45 | -0.43 |
VSS1R.RG | Valmieras Stikla Skiedra AS | 5.1 | 1.19 | 0.24 |
Low | High | |
Unlevered beta | 0.03 | 0.16 |
Relevered beta | 0.04 | 0.3 |
Adjusted relevered beta | 0.36 | 0.53 |
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.