APE.WA
APS Energia SA
Price:  
3.07 
PLN
Volume:  
26,121
Poland | Electrical Equipment

APE.WA WACC - Weighted Average Cost of Capital

The WACC of APS Energia SA (APE.WA) is 8.4%.

The Cost of Equity of APS Energia SA (APE.WA) is 8.9%.
The Cost of Debt of APS Energia SA (APE.WA) is 7.25%.

RangeSelected
Cost of equity7.9% - 9.9%8.9%
Tax rate4.7% - 8.7%6.7%
Cost of debt7.0% - 7.5%7.25%
WACC7.6% - 9.3%8.4%
WACC

APE.WA WACC calculation

CategoryLowHigh
Long-term bond rate5.5%6.0%
Equity market risk premium6.3%7.3%
Adjusted beta0.370.46
Additional risk adjustments0.0%0.5%
Cost of equity7.9%9.9%
Tax rate4.7%8.7%
Debt/Equity ratio
0.270.27
Cost of debt7.0%7.5%
After-tax WACC7.6%9.3%
Selected WACC8.4%

APE.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 APE.WA:

cost_of_equity (8.90%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.37) + 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.