CASH.MC WACC - Weighted Average Cost of Capital
The WACC of Prosegur Cash SA (CASH.MC) is 8.2%.
| Range | Selected | |
| Cost of equity | 10.9% - 15.7% | 13.3% |
| Tax rate | 25.0% - 25.0% | 25% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 6.9% - 9.5% | 8.2% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 7.4% | 8.4% |
| Adjusted beta | 1.04 | 1.37 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.9% | 15.7% |
| Tax rate | 25.0% | 25.0% |
| Debt/Equity ratio | 1.03 | 1.03 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 6.9% | 9.5% |
| Selected WACC | 8.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CASH.MC | Prosegur Cash SA | 1.03 | 0.86 | 0.49 |
| AKYHO.IS | Akdeniz Yatirim Holding AS | 0.01 | 0.96 | 0.95 |
| BFSA.DE | Befesa SA | 0.64 | 1.44 | 0.97 |
| LOOMIS.ST | Loomis AB | 0.52 | 0.49 | 0.36 |
| MRL.L | Marlowe PLC | 0.91 | 0.4 | 0.24 |
| MTO.L | Mitie Group PLC | 0.17 | 1.08 | 0.95 |
| ORMESTER.BD | Ormester Vagyonvedelmi Nyrt | 0.03 | 0.69 | 0.68 |
| TOM.OL | Tomra Systems ASA | 0.01 | 0.84 | 0.84 |
| TSEC.ST | Tempest Security AB | 0.38 | 0.05 | 0.04 |
| CXW | Corecivic Inc | 0.41 | 1.48 | 1.13 |
| Low | High | |
| Unlevered beta | 0.6 | 0.88 |
| Relevered beta | 1.06 | 1.55 |
| Adjusted relevered beta | 1.04 | 1.37 |
CASH.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 CASH.MC:
cost_of_equity (13.30%) = risk_free_rate (3.35%) + equity_risk_premium (7.90%) * adjusted_beta (1.04) + 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.