CFI.WA WACC - Weighted Average Cost of Capital

The WACC of CFI Holding SA (CFI.WA) is 7.8%.

The Cost of Equity of CFI Holding SA (CFI.WA) is 9.85%.

The Cost of Debt of CFI Holding SA (CFI.WA) is 5.35%.

	Range	Selected
Cost of equity	9.00% - 10.70%	9.85%
Tax rate	13.30% - 15.10%	14.20%
Cost of debt	4.00% - 6.70%	5.35%
WACC	6.8% - 8.7%	7.8%

WACC

CFI.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.56	0.57

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.00%	10.70%

Tax rate	13.30%	15.10%
Debt/Equity ratio	0.66	0.66
Cost of debt	4.00%	6.70%

After-tax WACC	6.8%	8.7%


Selected WACC	7.8%

CFI.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 CFI.WA:

cost_of_equity (9.85%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.56) + 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.