CIE.WA WACC - Weighted Average Cost of Capital
The WACC of Ciech SA (CIE.WA) is 9.6%.
| Range | Selected | |
| Cost of equity | 11.9% - 14.8% | 13.35% |
| Tax rate | 26.6% - 36.0% | 31.3% |
| Cost of debt | 4.0% - 8.6% | 6.3% |
| WACC | 8.2% - 10.9% | 9.6% |
| Category | Low | High |
| Long-term bond rate | 5.5% | 6.0% |
| Equity market risk premium | 6.3% | 7.3% |
| Adjusted beta | 1.02 | 1.13 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 11.9% | 14.8% |
| Tax rate | 26.6% | 36.0% |
| Debt/Equity ratio | 0.72 | 0.72 |
| Cost of debt | 4.0% | 8.6% |
| After-tax WACC | 8.2% | 10.9% |
| Selected WACC | 9.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CIE.WA | Ciech SA | 0.72 | 0.24 | 0.16 |
| ECR.MC | Ercros SA | 0.62 | 0.04 | 0.03 |
| ESNT.L | Essentra PLC | 0.49 | 1.04 | 0.79 |
| EXPL.PA | Soc D Explosifs Produits Chimiques SA | 0.22 | 0.73 | 0.64 |
| MRSHL.IS | Marshall Boya ve Vernik Sanayi AS | 0.05 | 1.16 | 1.12 |
| PETKM.IS | Petkim Petrokimya Holding AS | 0.65 | 1.05 | 0.73 |
| PVL.PA | Plastiques du Val de Loire SA | 9.24 | 0.8 | 0.11 |
| REC.BR | Recticel NV | 0.39 | 1.31 | 1.04 |
| SANFM.IS | Sanifoam Sunger Sanayi ve Ticaret AS | 0.23 | 1.16 | 1.01 |
| ZTF.L | Zotefoams PLC | 0.36 | 1.06 | 0.86 |
| Low | High | |
| Unlevered beta | 0.7 | 0.82 |
| Relevered beta | 1.03 | 1.19 |
| Adjusted relevered beta | 1.02 | 1.13 |
CIE.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 CIE.WA:
cost_of_equity (13.35%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (1.02) + 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.