CLR.MC WACC - Weighted Average Cost of Capital

The WACC of Clerhp Estructuras SA (CLR.MC) is 6.7%.

The Cost of Equity of Clerhp Estructuras SA (CLR.MC) is 6.80%.

The Cost of Debt of Clerhp Estructuras SA (CLR.MC) is 7.95%.

	Range	Selected
Cost of equity	5.80% - 7.80%	6.80%
Tax rate	17.60% - 23.60%	20.60%
Cost of debt	6.20% - 9.70%	7.95%
WACC	5.7% - 7.8%	6.7%

WACC

CLR.MC WACC calculation

Category	Low	High

Long-term bond rate	3.1%	3.6%
Equity market risk premium	7.4%	8.4%
Adjusted beta	0.36	0.44

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.80%	7.80%

Tax rate	17.60%	23.60%
Debt/Equity ratio	0.19	0.19
Cost of debt	6.20%	9.70%

After-tax WACC	5.7%	7.8%


Selected WACC	6.7%

CLR.MC'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 CLR.MC:

cost_of_equity (6.80%) = risk_free_rate (3.35%) + equity_risk_premium (7.90%) * 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.