CAST.TA WACC - Weighted Average Cost of Capital
The WACC of Castro Model Ltd (CAST.TA) is 7.3%.
| Range | Selected | |
| Cost of equity | 8.6% - 11.0% | 9.8% |
| Tax rate | 22.2% - 25.0% | 23.6% |
| Cost of debt | 5.0% - 7.0% | 6% |
| WACC | 6.4% - 8.3% | 7.3% |
| Category | Low | High |
| Long-term bond rate | 4.8% | 5.3% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.62 | 0.72 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.6% | 11.0% |
| Tax rate | 22.2% | 25.0% |
| Debt/Equity ratio | 0.9 | 0.9 |
| Cost of debt | 5.0% | 7.0% |
| After-tax WACC | 6.4% | 8.3% |
| Selected WACC | 7.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CAST.TA | Castro Model Ltd | 0.9 | 0.93 | 0.55 |
| 113.HK | Dickson Concepts (International) Ltd | 0.5 | 0.32 | 0.23 |
| 709.HK | Giordano International Ltd | 0.32 | 0.59 | 0.48 |
| 7416.T | Haruyama Holdings Inc | 0.99 | 0.19 | 0.11 |
| 7445.T | Right On Co Ltd | 0.28 | 0.41 | 0.34 |
| 7494.T | Konaka Co Ltd | 1.86 | 0.66 | 0.28 |
| 887.HK | Emperor Watch & Jewellery Ltd | 0.22 | 0.42 | 0.36 |
| 9990.T | Sac's Bar Holdings Inc | 0.06 | 0.8 | 0.77 |
| ARVINDFASN.NS | Arvind Fashions Ltd | 0.21 | 1.2 | 1.03 |
| MOZ.AX | Mosaic Brands Ltd | 17.95 | 1.62 | 0.11 |
| PADINI.KL | Padini Holdings Berhad | 0.26 | 0.21 | 0.18 |
| Low | High | |
| Unlevered beta | 0.28 | 0.36 |
| Relevered beta | 0.43 | 0.58 |
| Adjusted relevered beta | 0.62 | 0.72 |
CAST.TA'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 CAST.TA:
cost_of_equity (9.80%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.62) + 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.