CMP.WA WACC - Weighted Average Cost of Capital

The WACC of Comp SA (CMP.WA) is 10.3%.

The Cost of Equity of Comp SA (CMP.WA) is 11.00%.

The Cost of Debt of Comp SA (CMP.WA) is 7.50%.

	Range	Selected
Cost of equity	9.80% - 12.20%	11.00%
Tax rate	28.80% - 33.60%	31.20%
Cost of debt	7.00% - 8.00%	7.50%
WACC	9.2% - 11.4%	10.3%

WACC

CMP.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.67	0.78

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.80%	12.20%

Tax rate	28.80%	33.60%
Debt/Equity ratio	0.14	0.14
Cost of debt	7.00%	8.00%

After-tax WACC	9.2%	11.4%


Selected WACC	10.3%

CMP.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 CMP.WA:

cost_of_equity (11.00%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.67) + 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.