BOS.WA WACC - Weighted Average Cost of Capital

The WACC of Bank Ochrony Srodowiska SA (BOS.WA) is 8.6%.

The Cost of Equity of Bank Ochrony Srodowiska SA (BOS.WA) is 10.50%.

The Cost of Debt of Bank Ochrony Srodowiska SA (BOS.WA) is 5.00%.

	Range	Selected
Cost of equity	8.80% - 12.20%	10.50%
Tax rate	37.60% - 42.60%	40.10%
Cost of debt	5.00% - 5.00%	5.00%
WACC	7.4% - 9.9%	8.6%

WACC

BOS.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.52	0.78

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.80%	12.20%

Tax rate	37.60%	42.60%
Debt/Equity ratio	0.33	0.33
Cost of debt	5.00%	5.00%

After-tax WACC	7.4%	9.9%


Selected WACC	8.6%

BOS.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 BOS.WA:

cost_of_equity (10.50%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.52) + 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.