CPA.WA WACC - Weighted Average Cost of Capital

The WACC of Capital Partners SA (CPA.WA) is 8.1%.

The Cost of Equity of Capital Partners SA (CPA.WA) is 11.95%.

The Cost of Debt of Capital Partners SA (CPA.WA) is 5.00%.

	Range	Selected
Cost of equity	10.40% - 13.50%	11.95%
Tax rate	14.80% - 16.10%	15.45%
Cost of debt	5.00% - 5.00%	5.00%
WACC	7.4% - 8.8%	8.1%

WACC

CPA.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.78	0.95

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.40%	13.50%

Tax rate	14.80%	16.10%
Debt/Equity ratio	1	1
Cost of debt	5.00%	5.00%

After-tax WACC	7.4%	8.8%


Selected WACC	8.1%

CPA.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 CPA.WA:

cost_of_equity (11.95%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.78) + 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.