CFY.V WACC - Weighted Average Cost of Capital

The WACC of CF Energy Corp (CFY.V) is 5.5%.

The Cost of Equity of CF Energy Corp (CFY.V) is 10.50%.

The Cost of Debt of CF Energy Corp (CFY.V) is 6.90%.

	Range	Selected
Cost of equity	8.90% - 12.10%	10.50%
Tax rate	26.20% - 27.00%	26.60%
Cost of debt	4.70% - 9.10%	6.90%
WACC	3.9% - 7.1%	5.5%

WACC

CFY.V WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.98	1.19

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.90%	12.10%

Tax rate	26.20%	27.00%
Debt/Equity ratio	10.29	10.29
Cost of debt	4.70%	9.10%

After-tax WACC	3.9%	7.1%


Selected WACC	5.5%

CFY.V'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 CFY.V:

cost_of_equity (10.50%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.98) + 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.