CPEN.SW
Castle Private Equity AG
Price:  
3.26 
CHF
Volume:  
2,200.00
Switzerland | Capital Markets
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CPEN.SW WACC - Weighted Average Cost of Capital

The WACC of Castle Private Equity AG (CPEN.SW) is 5.3%.

The Cost of Equity of Castle Private Equity AG (CPEN.SW) is 5.65%.
The Cost of Debt of Castle Private Equity AG (CPEN.SW) is 5.00%.

Range Selected
Cost of equity 4.60% - 6.70% 5.65%
Tax rate 2.30% - 4.00% 3.15%
Cost of debt 5.00% - 5.00% 5.00%
WACC 4.8% - 5.8% 5.3%
WACC

CPEN.SW WACC calculation

Category Low High
Long-term bond rate 1.0% 1.5%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.42 0.53
Additional risk adjustments 1.5% 2.0%
Cost of equity 4.60% 6.70%
Tax rate 2.30% 4.00%
Debt/Equity ratio 1 1
Cost of debt 5.00% 5.00%
After-tax WACC 4.8% 5.8%
Selected WACC 5.3%

CPEN.SW'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 CPEN.SW:

cost_of_equity (5.65%) = risk_free_rate (1.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.42) + risk_adjustments (1.75%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.