CFY.V WACC - Weighted Average Cost of Capital

The WACC of CF Energy Corp (CFY.V) is 5.1%.

The Cost of Equity of CF Energy Corp (CFY.V) is 11.80%.

The Cost of Debt of CF Energy Corp (CFY.V) is 6.10%.

	Range	Selected
Cost of equity	10.20% - 13.40%	11.80%
Tax rate	26.20% - 27.00%	26.60%
Cost of debt	4.70% - 7.50%	6.10%
WACC	4.0% - 6.1%	5.1%

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	1.24	1.4

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.20%	13.40%

Tax rate	26.20%	27.00%
Debt/Equity ratio	10.64	10.64
Cost of debt	4.70%	7.50%

After-tax WACC	4.0%	6.1%


Selected WACC	5.1%

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 (11.80%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (1.24) + 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.