CFS.WA WACC - Weighted Average Cost of Capital

The WACC of Centrum Finansowe SA (CFS.WA) is 10.3%.

The Cost of Equity of Centrum Finansowe SA (CFS.WA) is 11.60%.

The Cost of Debt of Centrum Finansowe SA (CFS.WA) is 7.35%.

	Range	Selected
Cost of equity	10.10% - 13.10%	11.60%
Tax rate	20.80% - 21.20%	21.00%
Cost of debt	6.20% - 8.50%	7.35%
WACC	8.9% - 11.7%	10.3%

WACC

CFS.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.73	0.9

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.10%	13.10%

Tax rate	20.80%	21.20%
Debt/Equity ratio	0.3	0.3
Cost of debt	6.20%	8.50%

After-tax WACC	8.9%	11.7%


Selected WACC	10.3%

CFS.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 CFS.WA:

cost_of_equity (11.60%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.73) + 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.