CVX.V WACC - Weighted Average Cost of Capital

The WACC of CEMATRIX Corp (CVX.V) is 10.0%.

The Cost of Equity of CEMATRIX Corp (CVX.V) is 10.40%.

The Cost of Debt of CEMATRIX Corp (CVX.V) is 6.10%.

	Range	Selected
Cost of equity	8.40% - 12.40%	10.40%
Tax rate	16.20% - 19.40%	17.80%
Cost of debt	4.80% - 7.40%	6.10%
WACC	8.1% - 12.0%	10.0%

WACC

CVX.V WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.89	1.23

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.40%	12.40%

Tax rate	16.20%	19.40%
Debt/Equity ratio	0.07	0.07
Cost of debt	4.80%	7.40%

After-tax WACC	8.1%	12.0%


Selected WACC	10.0%

CVX.V'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 CVX.V:

cost_of_equity (10.40%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.89) + 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.