CSTM
Constellium SE
Price:  
11.19 
USD
Volume:  
1,079,269.00
France | Metals & Mining
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CSTM WACC - Weighted Average Cost of Capital

The WACC of Constellium SE (CSTM) is 8.6%.

The Cost of Equity of Constellium SE (CSTM) is 14.25%.
The Cost of Debt of Constellium SE (CSTM) is 6.05%.

Range Selected
Cost of equity 12.30% - 16.20% 14.25%
Tax rate 26.20% - 27.00% 26.60%
Cost of debt 5.10% - 7.00% 6.05%
WACC 7.4% - 9.8% 8.6%
WACC

CSTM WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.83 2.02
Additional risk adjustments 0.0% 0.5%
Cost of equity 12.30% 16.20%
Tax rate 26.20% 27.00%
Debt/Equity ratio 1.36 1.36
Cost of debt 5.10% 7.00%
After-tax WACC 7.4% 9.8%
Selected WACC 8.6%

CSTM'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 CSTM:

cost_of_equity (14.25%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.83) + 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.