CTM.ST
Catena Media PLC
Price:  
1.71 
SEK
Volume:  
9,814
Malta | Interactive Media & Services

CTM.ST WACC - Weighted Average Cost of Capital

The WACC of Catena Media PLC (CTM.ST) is 8.5%.

The Cost of Equity of Catena Media PLC (CTM.ST) is 7.3%.
The Cost of Debt of Catena Media PLC (CTM.ST) is 9.5%.

RangeSelected
Cost of equity5.9% - 8.7%7.3%
Tax rate1.1% - 5.0%3.05%
Cost of debt7.0% - 12.0%9.5%
WACC6.5% - 10.4%8.5%
WACC

CTM.ST WACC calculation

CategoryLowHigh
Long-term bond rate2.5%3.0%
Equity market risk premium5.1%6.1%
Adjusted beta0.660.85
Additional risk adjustments0.0%0.5%
Cost of equity5.9%8.7%
Tax rate1.1%5.0%
Debt/Equity ratio
1.791.79
Cost of debt7.0%12.0%
After-tax WACC6.5%10.4%
Selected WACC8.5%

CTM.ST'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 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.