CRW.AX WACC - Weighted Average Cost of Capital
The WACC of Cashrewards Ltd (CRW.AX) is 7.5%.
| Range | Selected | |
| Cost of equity | 9.8% - 13.4% | 11.6% |
| Tax rate | 17.7% - 23.1% | 20.4% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 6.6% - 8.5% | 7.5% |
| Category | Low | High |
| Long-term bond rate | 3.7% | 4.2% |
| Equity market risk premium | 4.7% | 5.7% |
| Adjusted beta | 1.3 | 1.53 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.8% | 13.4% |
| Tax rate | 17.7% | 23.1% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 6.6% | 8.5% |
| Selected WACC | 7.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CRW.AX | Cashrewards Ltd | 0.97 | 0.99 | 0.56 |
| 273060.KQ | Wise Birds Inc | 0.62 | 0.59 | 0.39 |
| ASP.AX | Aspermont Ltd | 0.02 | 2.57 | 2.53 |
| BBC.AX | BNK Banking Corporation Ltd | 8.74 | 0.48 | 0.06 |
| CM8.AX | Crowd Media Holdings Ltd | 0.06 | 2.01 | 1.92 |
| EN1.AX | Engage:BDR Ltd | 0.11 | 0.86 | 0.79 |
| FE.BK | Far East Fame Line DDB PCL | 0 | -0.17 | -0.17 |
| GTN.AX | GTN Ltd | 0.1 | 0.44 | 0.41 |
| MXO.AX | Motio Ltd | 0.25 | 1.19 | 0.99 |
| PPL.AX | Pureprofile Ltd | 0.09 | 1.77 | 1.65 |
| R3D.AX | R3D Resources Ltd | 0.24 | 1.57 | 1.31 |
| Low | High | |
| Unlevered beta | 0.56 | 0.99 |
| Relevered beta | 1.45 | 1.79 |
| Adjusted relevered beta | 1.3 | 1.53 |
CRW.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 CRW.AX:
cost_of_equity (11.60%) = risk_free_rate (3.95%) + equity_risk_premium (5.20%) * adjusted_beta (1.3) + 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.