CLN.WA WACC - Weighted Average Cost of Capital

The WACC of Celon Pharma SA (CLN.WA) is 8.6%.

The Cost of Equity of Celon Pharma SA (CLN.WA) is 8.65%.

The Cost of Debt of Celon Pharma SA (CLN.WA) is 7.50%.

	Range	Selected
Cost of equity	7.80% - 9.50%	8.65%
Tax rate	18.80% - 30.20%	24.50%
Cost of debt	7.00% - 8.00%	7.50%
WACC	7.8% - 9.4%	8.6%

WACC

CLN.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.36	0.41

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.80%	9.50%

Tax rate	18.80%	30.20%
Debt/Equity ratio	0.01	0.01
Cost of debt	7.00%	8.00%

After-tax WACC	7.8%	9.4%


Selected WACC	8.6%

CLN.WA'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 CLN.WA:

cost_of_equity (8.65%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * 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.