ATT.WA WACC - Weighted Average Cost of Capital

The WACC of Grupa Azoty SA (ATT.WA) is 8.9%.

The Cost of Equity of Grupa Azoty SA (ATT.WA) is 25.95%.

The Cost of Debt of Grupa Azoty SA (ATT.WA) is 6.05%.

	Range	Selected
Cost of equity	19.80% - 32.10%	25.95%
Tax rate	11.50% - 14.30%	12.90%
Cost of debt	5.10% - 7.00%	6.05%
WACC	7.2% - 10.6%	8.9%

WACC

ATT.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	2.25	3.49

Additional risk adjustments	0.0%	0.5%
Cost of equity	19.80%	32.10%

Tax rate	11.50%	14.30%
Debt/Equity ratio	4.73	4.73
Cost of debt	5.10%	7.00%

After-tax WACC	7.2%	10.6%


Selected WACC	8.9%

ATT.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 ATT.WA:

cost_of_equity (25.95%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (2.25) + 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.