CCBG
Capital City Bank Group Inc
Price:  
38.48 
USD
Volume:  
28,901.00
United States | Banks
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CCBG WACC - Weighted Average Cost of Capital

The WACC of Capital City Bank Group Inc (CCBG) is 8.1%.

The Cost of Equity of Capital City Bank Group Inc (CCBG) is 8.60%.
The Cost of Debt of Capital City Bank Group Inc (CCBG) is 5.00%.

Range Selected
Cost of equity 7.60% - 9.60% 8.60%
Tax rate 20.00% - 20.30% 20.15%
Cost of debt 5.00% - 5.00% 5.00%
WACC 7.2% - 9.0% 8.1%
WACC

CCBG WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.82 0.85
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.60% 9.60%
Tax rate 20.00% 20.30%
Debt/Equity ratio 0.12 0.12
Cost of debt 5.00% 5.00%
After-tax WACC 7.2% 9.0%
Selected WACC 8.1%

CCBG'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 CCBG:

cost_of_equity (8.60%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.82) + 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.