ATT.WA WACC - Weighted Average Cost of Capital

The WACC of Grupa Azoty SA (ATT.WA) is 6.0%.

The Cost of Equity of Grupa Azoty SA (ATT.WA) is 11.05%.

The Cost of Debt of Grupa Azoty SA (ATT.WA) is 5.60%.

	Range	Selected
Cost of equity	9.60% - 12.50%	11.05%
Tax rate	14.60% - 19.90%	17.25%
Cost of debt	4.20% - 7.00%	5.60%
WACC	4.9% - 7.1%	6.0%

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	0.65	0.82

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.60%	12.50%

Tax rate	14.60%	19.90%
Debt/Equity ratio	3.58	3.58
Cost of debt	4.20%	7.00%

After-tax WACC	4.9%	7.1%


Selected WACC	6.0%

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 (11.05%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.65) + 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.