CDR.WA WACC - Weighted Average Cost of Capital

The WACC of CD Projekt SA (CDR.WA) is 9.9%.

The Cost of Equity of CD Projekt SA (CDR.WA) is 9.85%.

The Cost of Debt of CD Projekt SA (CDR.WA) is 5.05%.

	Range	Selected
Cost of equity	8.50% - 11.20%	9.85%
Tax rate	7.40% - 9.80%	8.60%
Cost of debt	4.00% - 6.10%	5.05%
WACC	8.5% - 11.2%	9.9%

WACC

CDR.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.47	0.64

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.50%	11.20%

Tax rate	7.40%	9.80%
Debt/Equity ratio	0	0
Cost of debt	4.00%	6.10%

After-tax WACC	8.5%	11.2%


Selected WACC	9.9%

CDR.WA'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.WA:

cost_of_equity (9.85%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.47) + 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.