CSR.WA WACC - Weighted Average Cost of Capital

The WACC of Caspar Asset Management SA (CSR.WA) is 11.9%.

The Cost of Equity of Caspar Asset Management SA (CSR.WA) is 8.35%.

The Cost of Debt of Caspar Asset Management SA (CSR.WA) is 59.90%.

	Range	Selected
Cost of equity	7.60% - 9.10%	8.35%
Tax rate	23.60% - 28.10%	25.85%
Cost of debt	7.00% - 112.80%	59.90%
WACC	7.4% - 16.4%	11.9%

WACC

CSR.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.33	0.36

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.60%	9.10%

Tax rate	23.60%	28.10%
Debt/Equity ratio	0.11	0.11
Cost of debt	7.00%	112.80%

After-tax WACC	7.4%	16.4%


Selected WACC	11.9%

CSR.WA'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 CSR.WA:

cost_of_equity (8.35%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.33) + 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.