Catena AB (CATE.ST) WACC Analysis

As of June 4, 2025, Catena AB (CATE.ST) carries a Weighted Average Cost of Capital (WACC) of 5.1%. WACC reflects the blended rate Catena AB must pay to both equity and debt holders.

Within that, the cost of equity is 5.2%, the cost of debt is 4.0%, and the effective tax rate is 19.9%.

Breakdown of WACC Components

• Long-term bond rate: 2.5% – 3.0%
• Equity market risk premium: 5.1% – 6.1%
• Adjusted beta: 0.53 – 0.58
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.6

What It Means for Investors

With a selected WACC of 5.1%, Catena AB must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.