BNP.WA WACC - Weighted Average Cost of Capital

The WACC of BNP Paribas Bank Polska SA (BNP.WA) is 10.2%.

The Cost of Equity of BNP Paribas Bank Polska SA (BNP.WA) is 14.50%.

The Cost of Debt of BNP Paribas Bank Polska SA (BNP.WA) is 5.00%.

	Range	Selected
Cost of equity	13.20% - 15.80%	14.50%
Tax rate	33.60% - 45.30%	39.45%
Cost of debt	5.00% - 5.00%	5.00%
WACC	9.4% - 10.9%	10.2%

WACC

BNP.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	1.21	1.27

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.20%	15.80%

Tax rate	33.60%	45.30%
Debt/Equity ratio	0.61	0.61
Cost of debt	5.00%	5.00%

After-tax WACC	9.4%	10.9%


Selected WACC	10.2%

BNP.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 BNP.WA:

cost_of_equity (14.50%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (1.21) + 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.