COG.WA WACC - Weighted Average Cost of Capital

The WACC of Cognor Holding SA (COG.WA) is 10.7%.

The Cost of Equity of Cognor Holding SA (COG.WA) is 13.80%.

The Cost of Debt of Cognor Holding SA (COG.WA) is 8.00%.

	Range	Selected
Cost of equity	11.80% - 15.80%	13.80%
Tax rate	15.30% - 16.50%	15.90%
Cost of debt	7.00% - 9.00%	8.00%
WACC	9.2% - 12.1%	10.7%

WACC

COG.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.99	1.26

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.80%	15.80%

Tax rate	15.30%	16.50%
Debt/Equity ratio	0.79	0.79
Cost of debt	7.00%	9.00%

After-tax WACC	9.2%	12.1%


Selected WACC	10.7%

COG.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 COG.WA:

cost_of_equity (13.80%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.99) + 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.