CFS.WA WACC - Weighted Average Cost of Capital

The WACC of Centrum Finansowe SA (CFS.WA) is 10.1%.

The Cost of Equity of Centrum Finansowe SA (CFS.WA) is 11.15%.

The Cost of Debt of Centrum Finansowe SA (CFS.WA) is 7.30%.

	Range	Selected
Cost of equity	9.90% - 12.40%	11.15%
Tax rate	20.20% - 20.70%	20.45%
Cost of debt	6.40% - 8.20%	7.30%
WACC	8.9% - 11.2%	10.1%

WACC

CFS.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.69	0.8

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.90%	12.40%

Tax rate	20.20%	20.70%
Debt/Equity ratio	0.26	0.26
Cost of debt	6.40%	8.20%

After-tax WACC	8.9%	11.2%


Selected WACC	10.1%

CFS.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 CFS.WA:

cost_of_equity (11.15%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.69) + 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.