COG.WA WACC - Weighted Average Cost of Capital

The WACC of Cognor Holding SA (COG.WA) is 9.4%.

The Cost of Equity of Cognor Holding SA (COG.WA) is 10.20%.

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

	Range	Selected
Cost of equity	8.90% - 11.50%	10.20%
Tax rate	14.10% - 16.50%	15.30%
Cost of debt	7.00% - 10.80%	8.90%
WACC	8.0% - 10.8%	9.4%

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	0.53	0.69

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.90%	11.50%

Tax rate	14.10%	16.50%
Debt/Equity ratio	0.41	0.41
Cost of debt	7.00%	10.80%

After-tax WACC	8.0%	10.8%


Selected WACC	9.4%

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 (10.20%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.53) + 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.