COLUM.CO WACC - Weighted Average Cost of Capital

The WACC of Columbus A/S (COLUM.CO) is 6.8%.

The Cost of Equity of Columbus A/S (COLUM.CO) is 7.25%.

The Cost of Debt of Columbus A/S (COLUM.CO) is 4.65%.

	Range	Selected
Cost of equity	6.20% - 8.30%	7.25%
Tax rate	13.30% - 22.80%	18.05%
Cost of debt	4.00% - 5.30%	4.65%
WACC	5.9% - 7.8%	6.8%

WACC

COLUM.CO WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.68	0.75

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.20%	8.30%

Tax rate	13.30%	22.80%
Debt/Equity ratio	0.14	0.14
Cost of debt	4.00%	5.30%

After-tax WACC	5.9%	7.8%


Selected WACC	6.8%

COLUM.CO'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 COLUM.CO:

cost_of_equity (7.25%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.68) + 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.