CNS.L WACC - Weighted Average Cost of Capital

The WACC of Corero Network Security PLC (CNS.L) is 7.4%.

The Cost of Equity of Corero Network Security PLC (CNS.L) is 7.45%.

The Cost of Debt of Corero Network Security PLC (CNS.L) is 7.45%.

	Range	Selected
Cost of equity	6.50% - 8.40%	7.45%
Tax rate	10.50% - 11.00%	10.75%
Cost of debt	7.00% - 7.90%	7.45%
WACC	6.5% - 8.4%	7.4%

WACC

CNS.L WACC calculation

Category	Low	High

Long-term bond rate	4.0%	4.5%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.42	0.48

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.50%	8.40%

Tax rate	10.50%	11.00%
Debt/Equity ratio	0	0
Cost of debt	7.00%	7.90%

After-tax WACC	6.5%	8.4%


Selected WACC	7.4%

CNS.L'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 CNS.L:

cost_of_equity (7.45%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.42) + 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.