CLR.MC WACC - Weighted Average Cost of Capital

The WACC of Clerhp Estructuras SA (CLR.MC) is 7.0%.

The Cost of Equity of Clerhp Estructuras SA (CLR.MC) is 6.55%.

The Cost of Debt of Clerhp Estructuras SA (CLR.MC) is 14.90%.

	Range	Selected
Cost of equity	5.70% - 7.40%	6.55%
Tax rate	22.60% - 30.30%	26.45%
Cost of debt	14.90% - 14.90%	14.90%
WACC	6.3% - 7.7%	7.0%

WACC

CLR.MC WACC calculation

Category	Low	High

Long-term bond rate	3.1%	3.6%
Equity market risk premium	7.4%	8.4%
Adjusted beta	0.35	0.39

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.70%	7.40%

Tax rate	22.60%	30.30%
Debt/Equity ratio	0.11	0.11
Cost of debt	14.90%	14.90%

After-tax WACC	6.3%	7.7%


Selected WACC	7.0%

CLR.MC'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 CLR.MC:

cost_of_equity (6.55%) = risk_free_rate (3.35%) + equity_risk_premium (7.90%) * adjusted_beta (0.35) + 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.