CPT.AX WACC - Weighted Average Cost of Capital
The WACC of Cipherpoint Ltd (CPT.AX) is 7.3%.
| Range | Selected | |
| Cost of equity | 6.1% - 9.1% | 7.6% |
| Tax rate | 30.0% - 30.0% | 30% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.9% - 8.7% | 7.3% |
| Category | Low | High |
| Long-term bond rate | 4.1% | 4.6% |
| Equity market risk premium | 5.5% | 6.5% |
| Adjusted beta | 0.36 | 0.61 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.1% | 9.1% |
| Tax rate | 30.0% | 30.0% |
| Debt/Equity ratio | 0.07 | 0.07 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.9% | 8.7% |
| Selected WACC | 7.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CPT.AX | Cipherpoint Ltd | 0.07 | 0.92 | 0.88 |
| AR9.AX | Archtis Ltd | 0.06 | 0.04 | 0.03 |
| CAG.AX | Cape Range Ltd | 0 | -0.87 | -0.87 |
| ENS.NZ | Enprise Group Ltd | 0.2 | 0.21 | 0.18 |
| FZO.AX | Family Zone Cyber Safety Ltd | 0.08 | 1.51 | 1.43 |
| ICE.AX | Icetana Ltd | 0.01 | -0.46 | -0.45 |
| K2F.AX | K2FLY Ltd | 0 | 0.91 | 0.9 |
| OPL.AX | Opyl Ltd | 0.11 | 1.6 | 1.49 |
| PRO.AX | Prophecy International Holdings Ltd | 0.03 | -0.07 | -0.07 |
| TYM.AX | TYMLEZ Group Ltd | 0.1 | -1.73 | -1.62 |
| Low | High | |
| Unlevered beta | -0.01 | 0.46 |
| Relevered beta | 0.04 | 0.42 |
| Adjusted relevered beta | 0.36 | 0.61 |
CPT.AX'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 CPT.AX:
cost_of_equity (7.60%) = risk_free_rate (4.35%) + equity_risk_premium (6.00%) * adjusted_beta (0.36) + 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.