CLB WACC - Weighted Average Cost of Capital

The WACC of Core Laboratories NV (CLB) is 9.8%.

The Cost of Equity of Core Laboratories NV (CLB) is 10.85%.

The Cost of Debt of Core Laboratories NV (CLB) is 5.20%.

	Range	Selected
Cost of equity	9.30% - 12.40%	10.85%
Tax rate	22.30% - 32.00%	27.15%
Cost of debt	4.90% - 5.50%	5.20%
WACC	8.5% - 11.2%	9.8%

WACC

CLB WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	4.6%	5.6%
Adjusted beta	1.18	1.35

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.30%	12.40%

Tax rate	22.30%	32.00%
Debt/Equity ratio	0.17	0.17
Cost of debt	4.90%	5.50%

After-tax WACC	8.5%	11.2%


Selected WACC	9.8%

CLB'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 CLB:

cost_of_equity (10.85%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.18) + 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.