CRSO.TA WACC - Weighted Average Cost of Capital

The WACC of Carasso Motors Ltd (CRSO.TA) is 7.3%.

The Cost of Equity of Carasso Motors Ltd (CRSO.TA) is 13.40%.

The Cost of Debt of Carasso Motors Ltd (CRSO.TA) is 4.55%.

	Range	Selected
Cost of equity	11.20% - 15.60%	13.40%
Tax rate	22.30% - 23.10%	22.70%
Cost of debt	4.00% - 5.10%	4.55%
WACC	6.2% - 8.4%	7.3%

WACC

CRSO.TA WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	6.6%	7.6%
Adjusted beta	1.1	1.42

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.20%	15.60%

Tax rate	22.30%	23.10%
Debt/Equity ratio	1.59	1.59
Cost of debt	4.00%	5.10%

After-tax WACC	6.2%	8.4%


Selected WACC	7.3%

CRSO.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 CRSO.TA:

cost_of_equity (13.40%) = risk_free_rate (4.15%) + equity_risk_premium (7.10%) * adjusted_beta (1.1) + 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.