CPG.WA WACC - Weighted Average Cost of Capital

The WACC of Capital Park SA (CPG.WA) is 7.9%.

The Cost of Equity of Capital Park SA (CPG.WA) is 10.00%.

The Cost of Debt of Capital Park SA (CPG.WA) is 7.35%.

	Range	Selected
Cost of equity	8.70% - 11.30%	10.00%
Tax rate	17.80% - 20.50%	19.15%
Cost of debt	4.00% - 10.70%	7.35%
WACC	5.9% - 9.9%	7.9%

WACC

CPG.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.5	0.65

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.70%	11.30%

Tax rate	17.80%	20.50%
Debt/Equity ratio	1.09	1.09
Cost of debt	4.00%	10.70%

After-tax WACC	5.9%	9.9%


Selected WACC	7.9%

CPG.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 CPG.WA:

cost_of_equity (10.00%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.5) + 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.