The WACC of Coinshares International Ltd (CS.ST) is 31.1%.
| Range | Selected | |
| Cost of equity | 5.90% - 8.40% | 7.15% |
| Tax rate | 0.10% - 0.30% | 0.20% |
| Cost of debt | 4.00% - 834.30% | 419.15% |
| WACC | 5.8% - 56.4% | 31.1% |
| Category | Low | High |
| Long-term bond rate | 2.5% | 3.0% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.67 | 0.8 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.90% | 8.40% |
| Tax rate | 0.10% | 0.30% |
| Debt/Equity ratio | 0.06 | 0.06 |
| Cost of debt | 4.00% | 834.30% |
| After-tax WACC | 5.8% | 56.4% |
| Selected WACC | 31.1% | |
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 CS.ST:
cost_of_equity (7.15%) = risk_free_rate (2.75%) + equity_risk_premium (5.60%) * adjusted_beta (0.67) + 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.