CMDR.TA WACC - Weighted Average Cost of Capital

The WACC of Computer Direct Group Ltd (CMDR.TA) is 10.5%.

The Cost of Equity of Computer Direct Group Ltd (CMDR.TA) is 12.95%.

The Cost of Debt of Computer Direct Group Ltd (CMDR.TA) is 4.70%.

	Range	Selected
Cost of equity	11.30% - 14.60%	12.95%
Tax rate	23.00% - 23.20%	23.10%
Cost of debt	4.00% - 5.40%	4.70%
WACC	9.1% - 11.8%	10.5%

WACC

CMDR.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	1.06	1.23

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.30%	14.60%

Tax rate	23.00%	23.20%
Debt/Equity ratio	0.37	0.37
Cost of debt	4.00%	5.40%

After-tax WACC	9.1%	11.8%


Selected WACC	10.5%

CMDR.TA'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 CMDR.TA:

cost_of_equity (12.95%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (1.06) + 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.