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    • CSAN3.SA
    Cosan SA
    Price:  
    7.97 
    BRL
    Volume:  
    1,330,300
    Brazil | Oil, Gas & Consumable Fuels
    ValuationOverviewFinancialsForecastCompareHistorical PriceDividendsTransactionsPeople
    Valuation Summary
    Discounted Cash Flow
    Trading Multiples
    Peter Lynch Fair Value
    WACC

    CSAN3.SA WACC - Weighted Average Cost of Capital

    The WACC of Cosan SA (CSAN3.SA) is 15.4%.

    The Cost of Equity of Cosan SA (CSAN3.SA) is 20%.
    The Cost of Debt of Cosan SA (CSAN3.SA) is 16.25%.

    RangeSelected
    Cost of equity17.9% - 22.1%20%
    Tax rate6.7% - 13.4%10.05%
    Cost of debt8.9% - 23.6%16.25%
    WACC10.0% - 20.8%15.4%
    WACC

    CSAN3.SA WACC calculation

    CategoryLowHigh
    Long-term bond rate11.9%12.4%
    Equity market risk premium9.5%10.5%
    Adjusted beta0.640.88
    Additional risk adjustments0.0%0.5%
    Cost of equity17.9%22.1%
    Tax rate6.7%13.4%
    Debt/Equity ratio
    		4.884.88
    Cost of debt8.9%23.6%
    After-tax WACC10.0%20.8%
    Selected WACC15.4%

    CSAN3.SA WACC - Detailed calculations of Beta

    Debt/EquityUnlevered
    PeersCompany NameratioBetabeta
    CSAN3.SACosan SA4.881.560.28
    LowHigh
    Unlevered beta0.280.28
    Relevered beta0.460.82
    Adjusted relevered beta0.640.88

    CSAN3.SA'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 CSAN3.SA:

    cost_of_equity (20.00%) = risk_free_rate (12.15%) + equity_risk_premium (10.00%) * adjusted_beta (0.64) + 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.