CHP.WA
Cherrypick Games SA
Price:  
5.06 
PLN
Volume:  
214.00
Poland | Entertainment
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CHP.WA WACC - Weighted Average Cost of Capital

The WACC of Cherrypick Games SA (CHP.WA) is 7.8%.

The Cost of Equity of Cherrypick Games SA (CHP.WA) is 7.85%.
The Cost of Debt of Cherrypick Games SA (CHP.WA) is 8.65%.

Range Selected
Cost of equity 6.60% - 9.10% 7.85%
Tax rate 8.80% - 17.10% 12.95%
Cost of debt 7.00% - 10.30% 8.65%
WACC 6.6% - 9.1% 7.8%
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 0.17 0.36
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.60% 9.10%
Tax rate 8.80% 17.10%
Debt/Equity ratio 0.08 0.08
Cost of debt 7.00% 10.30%
After-tax WACC 6.6% 9.1%
Selected WACC 7.8%

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 (7.85%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.17) + 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.