CIG.WA WACC - Weighted Average Cost of Capital

The WACC of CI Games SA (CIG.WA) is 8.9%.

The Cost of Equity of CI Games SA (CIG.WA) is 8.90%.

The Cost of Debt of CI Games SA (CIG.WA) is 11.25%.

	Range	Selected
Cost of equity	7.90% - 9.90%	8.90%
Tax rate	14.80% - 20.00%	17.40%
Cost of debt	7.00% - 15.50%	11.25%
WACC	7.7% - 10.1%	8.9%

WACC

CIG.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.38	0.46

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.90%	9.90%

Tax rate	14.80%	20.00%
Debt/Equity ratio	0.11	0.11
Cost of debt	7.00%	15.50%

After-tax WACC	7.7%	10.1%


Selected WACC	8.9%

CIG.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 CIG.WA:

cost_of_equity (8.90%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.38) + 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.