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Cosan S.A. American Depositary Shares (each representing four Common Shares) (CSAN) — WACC Analysis

WACC Breakdown

Cosan S.A. American Depositary Shares (each representing four Common Shares) (CSAN) has a weighted average cost of capital (WACC) of 8.5%. The cost of equity is 8.5%, derived from a beta of 0.86 and a risk-free rate of 4.7%. The after-tax cost of debt is 5.0%. The capital structure is 100.0% equity and 0.0% debt.

Interpretation

A WACC of 8.5% is moderate, reflecting the market's balanced risk assessment of Cosan S.A. American Depositary Shares (each representing four Common Shares).

Investors can compare CSAN's WACC of 8.5% against industry peers to gauge its relative financing costs. A beta of 0.86 reflects the stock's volatility relative to the broader market.

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VALUATION

CSAN WACC: 8.51% for Cosan S.A. American Depositary Shares (each representing four Common Shares)

Current inputs imply a 8.51% cost of equity and a 5.00% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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[02]
WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

Cosan S.A. American Depositary Shares (each representing four Common Shares) Common Stock (CSAN) WACC Results
Weighted Average Cost of Capital
8.51%
Cost of Equity
8.51%
Risk-Free Rate4.67%
Beta0.86
Market Risk Premium4.23%
Cost of Debt
5.00%
Pre-Tax Cost of Debt5.00%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 100.00%($2751.20M)
Debt: 0.00%($0.00M)
Equity Component
8.51%
100.00% × 8.51%
Debt Component
0.00%
0.00% × 5.00%

Cosan S.A. American Depositary Shares (each representing four Common Shares) (CSAN) WACC in context

Cosan S.A. American Depositary Shares (each representing four Common Shares) (CSAN) currently screens with an estimated WACC of 8.51%. That blends a 8.51% cost of equity, a 5.00% pre-tax cost of debt, and a 100.00% equity weight into the discount rate you would typically use in a DCF model.

falls into a common range for established public companies and is a practical DCF starting point.

What CSAN WACC implies

A 8.51% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates CSAN

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.86 and equity accounts for 100.00% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.