CHP.WA WACC - Weighted Average Cost of Capital

The WACC of Cherrypick Games SA (CHP.WA) is 8.4%.

The Cost of Equity of Cherrypick Games SA (CHP.WA) is 8.35%.

The Cost of Debt of Cherrypick Games SA (CHP.WA) is 10.30%.

	Range	Selected
Cost of equity	7.50% - 9.20%	8.35%
Tax rate	8.50% - 17.10%	12.80%
Cost of debt	10.30% - 10.30%	10.30%
WACC	7.5% - 9.2%	8.4%

WACC

CHP.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.31	0.37

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.50%	9.20%

Tax rate	8.50%	17.10%
Debt/Equity ratio	0.05	0.05
Cost of debt	10.30%	10.30%

After-tax WACC	7.5%	9.2%


Selected WACC	8.4%

CHP.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 CHP.WA:

cost_of_equity (8.35%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.31) + 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.