CZT.WA WACC - Weighted Average Cost of Capital

The WACC of Czerwona Torebka SA (CZT.WA) is 22.3%.

The Cost of Equity of Czerwona Torebka SA (CZT.WA) is 8.35%.

The Cost of Debt of Czerwona Torebka SA (CZT.WA) is 53.85%.

	Range	Selected
Cost of equity	7.60% - 9.10%	8.35%
Tax rate	21.00% - 30.20%	25.60%
Cost of debt	7.00% - 100.70%	53.85%
WACC	6.6% - 38.1%	22.3%

WACC

CZT.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	0.35

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

Tax rate	21.00%	30.20%
Debt/Equity ratio	0.9	0.9
Cost of debt	7.00%	100.70%

After-tax WACC	6.6%	38.1%


Selected WACC	22.3%

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 (8.35%) = 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.