COG.WA WACC - Weighted Average Cost of Capital

The WACC of Cognor Holding SA (COG.WA) is 13.5%.

The Cost of Equity of Cognor Holding SA (COG.WA) is 13.15%.

The Cost of Debt of Cognor Holding SA (COG.WA) is 16.20%.

	Range	Selected
Cost of equity	11.70% - 14.60%	13.15%
Tax rate	11.30% - 13.40%	12.35%
Cost of debt	9.90% - 22.50%	16.20%
WACC	10.9% - 16.0%	13.5%

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	0.98	1.1

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.70%	14.60%

Tax rate	11.30%	13.40%
Debt/Equity ratio	0.41	0.41
Cost of debt	9.90%	22.50%

After-tax WACC	10.9%	16.0%


Selected WACC	13.5%

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 (13.15%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.98) + 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.