STNE
BRL
Price:  
13.65 
USD
Volume:  
8,029,063.00
Brazil | IT Services
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STNE WACC - Weighted Average Cost of Capital

The WACC of BRL (STNE) is 8.2%.

The Cost of Equity of BRL (STNE) is 10.10%.
The Cost of Debt of BRL (STNE) is 7.10%.

Range Selected
Cost of equity 8.80% - 11.40% 10.10%
Tax rate 23.00% - 29.80% 26.40%
Cost of debt 4.80% - 9.40% 7.10%
WACC 6.9% - 9.6% 8.2%
WACC

STNE WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.07 1.17
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.80% 11.40%
Tax rate 23.00% 29.80%
Debt/Equity ratio 0.61 0.61
Cost of debt 4.80% 9.40%
After-tax WACC 6.9% 9.6%
Selected WACC 8.2%

STNE'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 STNE:

cost_of_equity (10.10%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.07) + 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.