CPINV.BR WACC - Weighted Average Cost of Capital

The WACC of Care Property Invest NV (CPINV.BR) is 6.5%.

The Cost of Equity of Care Property Invest NV (CPINV.BR) is 9.30%.

The Cost of Debt of Care Property Invest NV (CPINV.BR) is 4.25%.

	Range	Selected
Cost of equity	8.10% - 10.50%	9.30%
Tax rate	0.90% - 2.30%	1.60%
Cost of debt	4.00% - 4.50%	4.25%
WACC	5.9% - 7.2%	6.5%

WACC

CPINV.BR WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.87	0.95

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.10%	10.50%

Tax rate	0.90%	2.30%
Debt/Equity ratio	1.16	1.16
Cost of debt	4.00%	4.50%

After-tax WACC	5.9%	7.2%


Selected WACC	6.5%

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 (9.30%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.87) + 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.