COG.WA WACC - Weighted Average Cost of Capital

The WACC of Cognor Holding SA (COG.WA) is 9.6%.

The Cost of Equity of Cognor Holding SA (COG.WA) is 10.90%.

The Cost of Debt of Cognor Holding SA (COG.WA) is 8.90%.

	Range	Selected
Cost of equity	9.60% - 12.20%	10.90%
Tax rate	14.10% - 16.50%	15.30%
Cost of debt	7.00% - 10.80%	8.90%
WACC	8.2% - 10.9%	9.6%

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	0.65	0.78

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.60%	12.20%

Tax rate	14.10%	16.50%
Debt/Equity ratio	0.67	0.67
Cost of debt	7.00%	10.80%

After-tax WACC	8.2%	10.9%


Selected WACC	9.6%

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 (10.90%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.65) + 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.