CDR.MC WACC - Weighted Average Cost of Capital

The WACC of Codere SA (CDR.MC) is 7.3%.

The Cost of Equity of Codere SA (CDR.MC) is 111.20%.

The Cost of Debt of Codere SA (CDR.MC) is 7.45%.

	Range	Selected
Cost of equity	74.90% - 147.50%	111.20%
Tax rate	25.00% - 25.00%	25.00%
Cost of debt	7.00% - 7.90%	7.45%
WACC	6.4% - 8.2%	7.3%

WACC

CDR.MC WACC calculation

Category	Low	High

Long-term bond rate	2.8%	3.3%
Equity market risk premium	6.3%	7.3%
Adjusted beta	11.41	19.63

Additional risk adjustments	0.0%	0.5%
Cost of equity	74.90%	147.50%

Tax rate	25.00%	25.00%
Debt/Equity ratio	61.71	61.71
Cost of debt	7.00%	7.90%

After-tax WACC	6.4%	8.2%


Selected WACC	7.3%

CDR.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 CDR.MC:

cost_of_equity (111.20%) = risk_free_rate (3.05%) + equity_risk_premium (6.80%) * adjusted_beta (11.41) + 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.