CPINV.BR WACC - Weighted Average Cost of Capital
The WACC of Care Property Invest NV (CPINV.BR) is 6.6%.
| Range | Selected | |
| Cost of equity | 8.2% - 10.6% | 9.4% |
| Tax rate | 0.9% - 2.3% | 1.6% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 6.0% - 7.3% | 6.6% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.89 | 0.96 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.2% | 10.6% |
| Tax rate | 0.9% | 2.3% |
| Debt/Equity ratio | 1.13 | 1.13 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 6.0% | 7.3% |
| Selected WACC | 6.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CPINV.BR | Care Property Invest NV | 1.13 | 0.78 | 0.37 |
| CSH.L | Civitas Social Housing PLC | 0.76 | 0.83 | 0.47 |
| DIGS.L | GCP Student Living PLC | 0.31 | 1.19 | 0.91 |
| ESP.L | Empiric Student Property PLC | 0.62 | 0.7 | 0.44 |
| HLGYO.IS | Halk Gayrimenkul Yatirim Ortakligi AS | 0.21 | 1.11 | 0.92 |
| HOMI.BR | Home Invest Belgium SA | 1.03 | 0.29 | 0.14 |
| IRES.IR | Irish Residential Properties REIT PLC | 1.01 | 0.58 | 0.29 |
| PRSR.L | PRS Reit PLC | 0.66 | 0.69 | 0.42 |
| RESI.L | Residential Secure Income PLC | 2.05 | 0.76 | 0.25 |
| SOHO.L | Triple Point Social Housing REIT PLC | 1.01 | 0.91 | 0.45 |
| Low | High | |
| Unlevered beta | 0.4 | 0.44 |
| Relevered beta | 0.84 | 0.94 |
| Adjusted relevered beta | 0.89 | 0.96 |
CPINV.BR'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 CPINV.BR:
cost_of_equity (9.40%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.89) + 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.