CSAN3.SA
Cosan SA
Price:  
8.01 
BRL
Volume:  
1,330,300.00
Brazil | Oil, Gas & Consumable Fuels
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

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 20.00%.
The Cost of Debt of Cosan SA (CSAN3.SA) is 16.25%.

Range Selected
Cost of equity 17.90% - 22.10% 20.00%
Tax rate 6.70% - 13.40% 10.05%
Cost of debt 8.90% - 23.60% 16.25%
WACC 10.0% - 20.8% 15.4%
WACC

CSAN3.SA WACC calculation

Category Low High
Long-term bond rate 11.9% 12.4%
Equity market risk premium 9.5% 10.5%
Adjusted beta 0.64 0.88
Additional risk adjustments 0.0% 0.5%
Cost of equity 17.90% 22.10%
Tax rate 6.70% 13.40%
Debt/Equity ratio 4.88 4.88
Cost of debt 8.90% 23.60%
After-tax WACC 10.0% 20.8%
Selected WACC 15.4%

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.