CIG.WA WACC - Weighted Average Cost of Capital
The WACC of CI Games SA (CIG.WA) is 8.9%.
| Range | Selected | |
| Cost of equity | 8.0% - 9.9% | 8.95% |
| Tax rate | 14.8% - 20.0% | 17.4% |
| Cost of debt | 7.0% - 15.5% | 11.25% |
| WACC | 7.8% - 10.1% | 8.9% |
| Category | Low | High |
| Long-term bond rate | 5.5% | 6.0% |
| Equity market risk premium | 6.3% | 7.3% |
| Adjusted beta | 0.39 | 0.46 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.0% | 9.9% |
| Tax rate | 14.8% | 20.0% |
| Debt/Equity ratio | 0.12 | 0.12 |
| Cost of debt | 7.0% | 15.5% |
| After-tax WACC | 7.8% | 10.1% |
| Selected WACC | 8.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CIG.WA | CI Games SA | 0.12 | 0.65 | 0.6 |
| ALG.WA | All In! Games SA | 0.14 | 0.29 | 0.26 |
| ART.WA | Artifex Mundi SA | 0.03 | 0.64 | 0.62 |
| BLO.WA | Bloober Team SA | 0.02 | 0.4 | 0.4 |
| FOR.WA | Forever Entertainment SA | 0.01 | 0.05 | 0.05 |
| GCOR.ST | Gaming Corps AB | 0.02 | -0.32 | -0.32 |
| MOS.L | Mobile Streams PLC | 0 | -1.8 | -1.8 |
| MOV.WA | Movie Games SA | 0.01 | -0.28 | -0.28 |
| NITRO.ST | Nitro Games Oyj | 0.9 | 0.17 | 0.1 |
| SOK.WA | Sonka SA | 0.02 | 0.12 | 0.11 |
| Low | High | |
| Unlevered beta | 0.08 | 0.17 |
| Relevered beta | 0.09 | 0.19 |
| Adjusted relevered beta | 0.39 | 0.46 |
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 (8.95%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.39) + 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.