CZT.WA WACC - Weighted Average Cost of Capital
The WACC of Czerwona Torebka SA (CZT.WA) is 8.5%.
| Range | Selected | |
| Cost of equity | 7.7% - 9.1% | 8.4% |
| Tax rate | 8.6% - 18.0% | 13.3% |
| Cost of debt | 7.0% - 89.6% | 48.3% |
| WACC | 7.7% - 9.4% | 8.5% |
| Category | Low | High |
| Long-term bond rate | 5.5% | 6.0% |
| Equity market risk premium | 6.3% | 7.3% |
| Adjusted beta | 0.34 | 0.35 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.7% | 9.1% |
| Tax rate | 8.6% | 18.0% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 7.0% | 89.6% |
| After-tax WACC | 7.7% | 9.4% |
| Selected WACC | 8.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CZT.WA | Czerwona Torebka SA | 0.01 | -0.22 | -0.22 |
| BERR.PA | Financiere Immobiliere Etang Berre Medit SA | 0.04 | 0.43 | 0.41 |
| CPG.WA | Capital Park SA | 1.09 | 0.01 | 0.01 |
| EFI.PA | Eurasia Fonciere Investissements SA | 0.93 | 0.09 | 0.05 |
| IBS.WA | Noble Financials SA | 2.41 | 0.48 | 0.15 |
| KAMP.AT | REDS Real Estate Development and Services SA | 0.2 | -0.4 | -0.34 |
| PLAZ.L | Plaza Centers NV | 21.52 | 0.46 | 0.02 |
| RHD.WA | Reinhold Europe AB | 0.21 | -0.39 | -0.33 |
| SFPN.SW | SF Urban Properties AG | 1.14 | 0.05 | 0.02 |
| STUDBO.ST | Studentbostader I Sverige AB (publ) | 5.93 | 0.19 | 0.03 |
| Low | High | |
| Unlevered beta | 0.02 | 0.03 |
| Relevered beta | 0.01 | 0.03 |
| Adjusted relevered beta | 0.34 | 0.35 |
CZT.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 CZT.WA:
cost_of_equity (8.40%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.34) + 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.