BDZ.WA WACC - Weighted Average Cost of Capital

The WACC of Elektrocieplownia Bedzin SA (BDZ.WA) is 9.3%.

The Cost of Equity of Elektrocieplownia Bedzin SA (BDZ.WA) is 9.85%.

The Cost of Debt of Elektrocieplownia Bedzin SA (BDZ.WA) is 7.00%.

	Range	Selected
Cost of equity	8.50% - 11.20%	9.85%
Tax rate	0.70% - 2.90%	1.80%
Cost of debt	7.00% - 7.00%	7.00%
WACC	8.2% - 10.4%	9.3%

WACC

BDZ.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.47	0.63

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.50%	11.20%

Tax rate	0.70%	2.90%
Debt/Equity ratio	0.2	0.2
Cost of debt	7.00%	7.00%

After-tax WACC	8.2%	10.4%


Selected WACC	9.3%

BDZ.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 BDZ.WA:

cost_of_equity (9.85%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.47) + 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.