CNR WACC - Weighted Average Cost of Capital

The WACC of Core Natural Resources, Inc. (CNR) is 9.5%.

The Cost of Equity of Core Natural Resources, Inc. (CNR) is 9.50%.

The Cost of Debt of Core Natural Resources, Inc. (CNR) is 11.80%.

	Range	Selected
Cost of equity	7.60% - 11.40%	9.50%
Tax rate	14.80% - 16.60%	15.70%
Cost of debt	11.20% - 12.40%	11.80%
WACC	7.7% - 11.3%	9.5%

WACC

CNR WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	4.6%	5.6%
Adjusted beta	0.81	1.17

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.60%	11.40%

Tax rate	14.80%	16.60%
Debt/Equity ratio	0.09	0.09
Cost of debt	11.20%	12.40%

After-tax WACC	7.7%	11.3%


Selected WACC	9.5%

CNR'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 CNR:

cost_of_equity (9.50%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.81) + 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.