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Controladora Axtel SAB de CV
BMV:CTAXTELA

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Controladora Axtel SAB de CV
BMV:CTAXTELA
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Price: 0.871 MXN -0.23%
Market Cap: Mex$0

Discount Rate

CTAXTELA Cost of Equity
Discount Rate

N/A
Cost of Equity
N/A
Risk-Free Rate
N/A
Beta
N/A
ERP
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CTAXTELA WACC
Discount Rate

N/A
WACC
N/A
Debt Weight
N/A
Cost of Debt
N/A
Cost of Equity
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What is CTAXTELA's discount rate?

We do not have the specific data for CTAXTELA's Cost of Equity and WACC (Weighted Average Cost of Capital). The selection of the appropriate discount rate is contingent on the type of cash flows being discounted.

For Equity Valuation: When valuing equity, especially in scenarios where you are discounting cash flows to equity holders (such as Net Income, Earnings Per Share (EPS), or Free Cash Flow to Equity), the Cost of Equity should be used.

For Firm Valuation: In contrast, when valuing the entire firm and discounting cash flows available to both debt and equity holders (like Free Cash Flow to the Firm), the Weighted Average Cost of Capital (WACC) is the appropriate rate."

How is Cost of Equity for CTAXTELA calculated?

The Cost of Equity represents the return a company must offer investors to compensate for the risk of investing in its stock. It's calculated using the Capital Asset Pricing Model (CAPM), which combines the risk-free rate, the stock's beta, and the equity risk premium (ERP).

This model considers the inherent risk of investing in the stock compared to a risk-free investment and the market's overall risk.

Here is how we calculate the cost of equity for CTAXTELA

Cost of Equity
=
Risk-Free Rate
+
Beta
x
ERP

How is WACC for CTAXTELA calculated?

WACC, or Weighted Average Cost of Capital, is a calculation that reflects the average rate of return a company is expected to pay its security holders to finance its assets. It is a critical measure in financial analysis for valuing a company’s entire operations.

The WACC formula combines the costs of equity and debt, weighted by their respective proportions in the company's capital structure.

Here is how we calculate WACC for CTAXTELA

WACC
=
Cost of Equity
x
Equity Weight
+
Cost of Debt
x
Debt Weight
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