CTEA.L WACC - Weighted Average Cost of Capital
The WACC of Catenae Innovation PLC (CTEA.L) is 5.8%.
| Range | Selected | |
| Cost of equity | 5.6% - 7.9% | 6.75% |
| Tax rate | 0.6% - 1.1% | 0.85% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.3% - 6.4% | 5.8% |
| Category | Low | High |
| Long-term bond rate | 3.7% | 4.2% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.31 | 0.45 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.6% | 7.9% |
| Tax rate | 0.6% | 1.1% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.3% | 6.4% |
| Selected WACC | 5.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CTEA.L | Catenae Innovation PLC | 0.83 | 0 | 0 |
| ARC.L | Arcontech Group PLC | 0.05 | -0.43 | -0.41 |
| B24.WA | Brand 24 SA | 0.03 | 0.1 | 0.1 |
| DISH.L | BigDish PLC | 2.68 | 0.13 | 0.04 |
| FASTPC.CO | Fastpasscorp A/S | 0.04 | -0.59 | -0.57 |
| GOJXN.AS | GeoJunxion NV | 0.14 | -0.09 | -0.08 |
| INX.L | i-nexus Global PLC | 3.66 | -0.87 | -0.19 |
| MBT.L | Mobile Tornado Group PLC | 1.8 | 0.68 | 0.25 |
| O5H.DE | Openlimit Holding AG | 15.42 | 0.25 | 0.02 |
| TIDE.L | Crimson Tide PLC | 0.16 | 0.68 | 0.59 |
| XMR.ST | XMReality AB (publ) | 0.12 | 0.18 | 0.16 |
| Low | High | |
| Unlevered beta | 0 | 0.04 |
| Relevered beta | -0.03 | 0.18 |
| Adjusted relevered beta | 0.31 | 0.45 |
CTEA.L'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 CTEA.L:
cost_of_equity (6.75%) = risk_free_rate (3.95%) + equity_risk_premium (6.50%) * adjusted_beta (0.31) + 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.