BLT.WA
Balticon SA
Price:  
19.00 
PLN
Volume:  
1,420.00
Poland | Commercial Services & Supplies
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BLT.WA WACC - Weighted Average Cost of Capital

The WACC of Balticon SA (BLT.WA) is 7.7%.

The Cost of Equity of Balticon SA (BLT.WA) is 11.70%.
The Cost of Debt of Balticon SA (BLT.WA) is 5.00%.

Range Selected
Cost of equity 8.60% - 14.80% 11.70%
Tax rate 26.10% - 27.30% 26.70%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.2% - 9.2% 7.7%
WACC

BLT.WA WACC calculation

Category Low High
Long-term bond rate 5.5% 6.0%
Equity market risk premium 6.3% 7.3%
Adjusted beta 0.49 1.13
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.60% 14.80%
Tax rate 26.10% 27.30%
Debt/Equity ratio 1 1
Cost of debt 5.00% 5.00%
After-tax WACC 6.2% 9.2%
Selected WACC 7.7%

BLT.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 BLT.WA:

cost_of_equity (11.70%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.49) + 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.