06N.WA WACC - Weighted Average Cost of Capital

The WACC of Magna Polonia SA (06N.WA) is 9.7%.

The Cost of Equity of Magna Polonia SA (06N.WA) is 9.75%.

The Cost of Debt of Magna Polonia SA (06N.WA) is 12.50%.

	Range	Selected
Cost of equity	8.40% - 11.10%	9.75%
Tax rate	17.30% - 22.40%	19.85%
Cost of debt	8.60% - 16.40%	12.50%
WACC	8.3% - 11.2%	9.7%

WACC

06N.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.45	0.63

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.40%	11.10%

Tax rate	17.30%	22.40%
Debt/Equity ratio	0.03	0.03
Cost of debt	8.60%	16.40%

After-tax WACC	8.3%	11.2%


Selected WACC	9.7%

06N.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 06N.WA:

cost_of_equity (9.75%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.45) + 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.