BRS.WA WACC - Weighted Average Cost of Capital

The WACC of Boryszew SA (BRS.WA) is 9.3%.

The Cost of Equity of Boryszew SA (BRS.WA) is 12.10%.

The Cost of Debt of Boryszew SA (BRS.WA) is 6.25%.

	Range	Selected
Cost of equity	11.00% - 13.20%	12.10%
Tax rate	16.40% - 25.80%	21.10%
Cost of debt	4.80% - 7.70%	6.25%
WACC	8.3% - 10.3%	9.3%

WACC

BRS.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.87	0.92

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.00%	13.20%

Tax rate	16.40%	25.80%
Debt/Equity ratio	0.63	0.63
Cost of debt	4.80%	7.70%

After-tax WACC	8.3%	10.3%


Selected WACC	9.3%

BRS.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 BRS.WA:

cost_of_equity (12.10%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.87) + 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.