CMM.MC WACC - Weighted Average Cost of Capital
The WACC of CommCenter SA (CMM.MC) is 5.7%.
| Range | Selected | |
| Cost of equity | 6.5% - 9.6% | 8.05% |
| Tax rate | 25.1% - 26.4% | 25.75% |
| Cost of debt | 4.0% - 6.2% | 5.1% |
| WACC | 4.5% - 6.8% | 5.7% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 7.4% | 8.4% |
| Adjusted beta | 0.45 | 0.65 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.5% | 9.6% |
| Tax rate | 25.1% | 26.4% |
| Debt/Equity ratio | 1.24 | 1.24 |
| Cost of debt | 4.0% | 6.2% |
| After-tax WACC | 4.5% | 6.8% |
| Selected WACC | 5.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CMM.MC | CommCenter SA | 1.24 | 0 | 0 |
| ALCHI.PA | Alchimie SAS | 5.31 | -0.14 | -0.03 |
| BBT.WA | Boombit SA | 0 | 0.15 | 0.15 |
| CRB.WA | Carbon Studio SA | 0.23 | 0.2 | 0.17 |
| KOLL.ST | Kollect on Demand Holding AB (publ) | 0.11 | 0.85 | 0.79 |
| NVP.MI | Nvp SpA | 0.51 | -0.1 | -0.07 |
| PAS.WA | Passus SA | 0 | 1.12 | 1.12 |
| SIM.WA | Simfabric SA | 0.05 | 0.41 | 0.39 |
| TOOP.L | Toople PLC | 4.03 | 0.03 | 0.01 |
| UD.MI | Unidata SpA | 0.7 | 0.57 | 0.38 |
| Low | High | |
| Unlevered beta | 0.09 | 0.25 |
| Relevered beta | 0.18 | 0.48 |
| Adjusted relevered beta | 0.45 | 0.65 |
CMM.MC'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 CMM.MC:
cost_of_equity (8.05%) = risk_free_rate (3.35%) + equity_risk_premium (7.90%) * adjusted_beta (0.45) + 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.