CPTP.TA WACC - Weighted Average Cost of Capital

The WACC of Capital Point Ltd (CPTP.TA) is 8.2%.

The Cost of Equity of Capital Point Ltd (CPTP.TA) is 9.45%.

The Cost of Debt of Capital Point Ltd (CPTP.TA) is 5.00%.

	Range	Selected
Cost of equity	8.50% - 10.40%	9.45%
Tax rate	14.90% - 16.90%	15.90%
Cost of debt	5.00% - 5.00%	5.00%
WACC	7.5% - 8.9%	8.2%

WACC

CPTP.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.6	0.64

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.50%	10.40%

Tax rate	14.90%	16.90%
Debt/Equity ratio	0.3	0.3
Cost of debt	5.00%	5.00%

After-tax WACC	7.5%	8.9%


Selected WACC	8.2%

CPTP.TA'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 CPTP.TA:

cost_of_equity (9.45%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.6) + 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.