CRFSA.IS WACC - Weighted Average Cost of Capital
The WACC of CarrefourSA Carrefour Sabanci Ticaret Merkezi AS (CRFSA.IS) is 25.1%.
| Range | Selected | |
| Cost of equity | 26.9% - 29.1% | 28% |
| Tax rate | 16.7% - 19.6% | 18.15% |
| Cost of debt | 10.5% - 34.4% | 22.45% |
| WACC | 21.5% - 28.7% | 25.1% |
| Category | Low | High |
| Long-term bond rate | 21.4% | 21.9% |
| Equity market risk premium | 10.2% | 11.2% |
| Adjusted beta | 0.54 | 0.61 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 26.9% | 29.1% |
| Tax rate | 16.7% | 19.6% |
| Debt/Equity ratio | 0.42 | 0.42 |
| Cost of debt | 10.5% | 34.4% |
| After-tax WACC | 21.5% | 28.7% |
| Selected WACC | 25.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CRFSA.IS | CarrefourSA Carrefour Sabanci Ticaret Merkezi AS | 0.42 | 1.24 | 0.93 |
| B4B.DE | Metro AG | 2.08 | 0.5 | 0.18 |
| BIZIM.IS | Bizim Toptan Satis Magazalari AS | 0.26 | 0.9 | 0.75 |
| CA.PA | Carrefour SA | 2.59 | 0.25 | 0.08 |
| DIA.MC | Distribuidora Internacional de Alimentacion SA | 0.6 | 0.39 | 0.26 |
| FNTS.PA | Finatis SA | 130.82 | 1.22 | 0.01 |
| HAW.DE | Hawesko Holding AG | 0.89 | 0.05 | 0.03 |
| LNTA.L | Lenta Plc | 1.94 | 1.04 | 0.4 |
| OKEY.L | O'Key Group SA | 6.62 | 1.48 | 0.23 |
| TKM1T.TL | Tallinna Kaubamaja Grupp AS | 0.85 | -0.1 | -0.06 |
| Low | High | |
| Unlevered beta | 0.14 | 0.24 |
| Relevered beta | 0.31 | 0.42 |
| Adjusted relevered beta | 0.54 | 0.61 |
CRFSA.IS'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 CRFSA.IS:
cost_of_equity (28.00%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.54) + 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.