CVEO
Civeo Corp
Price:  
19.14 
USD
Volume:  
116,555.00
United States | Commercial Services & Supplies
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CVEO WACC - Weighted Average Cost of Capital

The WACC of Civeo Corp (CVEO) is 7.4%.

The Cost of Equity of Civeo Corp (CVEO) is 7.70%.
The Cost of Debt of Civeo Corp (CVEO) is 9.40%.

Range Selected
Cost of equity 6.30% - 9.10% 7.70%
Tax rate 35.20% - 47.70% 41.45%
Cost of debt 6.40% - 12.40% 9.40%
WACC 6.0% - 8.7% 7.4%
WACC

CVEO WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.54 0.76
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.30% 9.10%
Tax rate 35.20% 47.70%
Debt/Equity ratio 0.18 0.18
Cost of debt 6.40% 12.40%
After-tax WACC 6.0% 8.7%
Selected WACC 7.4%

CVEO'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 CVEO:

cost_of_equity (7.70%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.54) + 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.