ARR.WA
Arteria SA
Price:  
9.4 
PLN
Volume:  
3
Poland | Media

ARR.WA WACC - Weighted Average Cost of Capital

The WACC of Arteria SA (ARR.WA) is 7.8%.

The Cost of Equity of Arteria SA (ARR.WA) is 8.65%.
The Cost of Debt of Arteria SA (ARR.WA) is 5.6%.

RangeSelected
Cost of equity7.8% - 9.5%8.65%
Tax rate16.1% - 19.2%17.65%
Cost of debt4.2% - 7.0%5.6%
WACC6.9% - 8.7%7.8%
WACC

ARR.WA WACC calculation

CategoryLowHigh
Long-term bond rate5.5%6.0%
Equity market risk premium6.3%7.3%
Adjusted beta0.360.41
Additional risk adjustments0.0%0.5%
Cost of equity7.8%9.5%
Tax rate16.1%19.2%
Debt/Equity ratio
0.280.28
Cost of debt4.2%7.0%
After-tax WACC6.9%8.7%
Selected WACC7.8%

ARR.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 ARR.WA:

cost_of_equity (8.65%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.36) + 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.