CABK.MC
Caixabank SA
Price:  
6.85 
EUR
Volume:  
3,222.00
Spain | Banks
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CABK.MC WACC - Weighted Average Cost of Capital

The WACC of Caixabank SA (CABK.MC) is 6.6%.

The Cost of Equity of Caixabank SA (CABK.MC) is 10.00%.
The Cost of Debt of Caixabank SA (CABK.MC) is 5.00%.

Range Selected
Cost of equity 8.20% - 11.80% 10.00%
Tax rate 22.00% - 28.70% 25.35%
Cost of debt 5.00% - 5.00% 5.00%
WACC 5.9% - 7.4% 6.6%
WACC

CABK.MC WACC calculation

Category Low High
Long-term bond rate 3.1% 3.6%
Equity market risk premium 7.4% 8.4%
Adjusted beta 0.69 0.91
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.20% 11.80%
Tax rate 22.00% 28.70%
Debt/Equity ratio 1.15 1.15
Cost of debt 5.00% 5.00%
After-tax WACC 5.9% 7.4%
Selected WACC 6.6%

CABK.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 CABK.MC:

cost_of_equity (10.00%) = risk_free_rate (3.35%) + equity_risk_premium (7.90%) * adjusted_beta (0.69) + 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.