The WACC of Catena Media PLC (CTM.ST) is 8.5%.
Range | Selected | |
Cost of equity | 5.9% - 8.7% | 7.3% |
Tax rate | 1.1% - 5.0% | 3.05% |
Cost of debt | 7.0% - 12.0% | 9.5% |
WACC | 6.5% - 10.4% | 8.5% |
Category | Low | High |
Long-term bond rate | 2.5% | 3.0% |
Equity market risk premium | 5.1% | 6.1% |
Adjusted beta | 0.66 | 0.85 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 5.9% | 8.7% |
Tax rate | 1.1% | 5.0% |
Debt/Equity ratio | 1.79 | 1.79 |
Cost of debt | 7.0% | 12.0% |
After-tax WACC | 6.5% | 10.4% |
Selected WACC | 8.5% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
CTM.ST | Catena Media PLC | 1.79 | 0.51 | 0.18 |
ALALO.PA | Acheter Louer Fr SA | 4.72 | -1.99 | -0.35 |
AUTO.L | Auto Trader Group PLC | 0 | 0.71 | 0.71 |
CPL.WA | Comperia.pl SA | 0.08 | 0.27 | 0.25 |
G24.DE | Scout24 AG | 0.02 | 0.34 | 0.33 |
MYRK.DE | MyHammer Holding AG | 0.01 | 0.16 | 0.16 |
NWO.DE | New Work SE | 0.14 | 0.44 | 0.39 |
OTMP.L | Onthemarket PLC | 0.01 | -0.88 | -0.87 |
RMV.L | Rightmove PLC | 0 | 0.42 | 0.42 |
WPL.WA | Wirtualna Polska Holding SA | 0.31 | 0.22 | 0.17 |
Low | High | |
Unlevered beta | 0.18 | 0.28 |
Relevered beta | 0.49 | 0.78 |
Adjusted relevered beta | 0.66 | 0.85 |
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 CTM.ST:
cost_of_equity (7.30%) = risk_free_rate (2.75%) + equity_risk_premium (5.60%) * adjusted_beta (0.66) + 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.