CLNV WACC - Weighted Average Cost of Capital

The WACC of Clean Vision Corp (CLNV) is 13.3%.

The Cost of Equity of Clean Vision Corp (CLNV) is 15.05%.

The Cost of Debt of Clean Vision Corp (CLNV) is 18.10%.

	Range	Selected
Cost of equity	12.90% - 17.20%	15.05%
Tax rate	18.30% - 42.20%	30.25%
Cost of debt	18.10% - 18.10%	18.10%
WACC	14.2% - 12.3%	13.3%

WACC

CLNV WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	4.6%	5.6%
Adjusted beta	1.97	2.21

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.90%	17.20%

Tax rate	18.30%	42.20%
Debt/Equity ratio	2.69	2.69
Cost of debt	18.10%	18.10%

After-tax WACC	14.2%	12.3%


Selected WACC	13.3%

CLNV'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 CLNV:

cost_of_equity (15.05%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.97) + 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.