CIE.WA WACC - Weighted Average Cost of Capital

The WACC of Ciech SA (CIE.WA) is 7.8%.

The Cost of Equity of Ciech SA (CIE.WA) is 10.40%.

The Cost of Debt of Ciech SA (CIE.WA) is 6.30%.

	Range	Selected
Cost of equity	8.70% - 12.10%	10.40%
Tax rate	26.60% - 36.00%	31.30%
Cost of debt	4.00% - 8.60%	6.30%
WACC	6.3% - 9.4%	7.8%

WACC

CIE.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.5	0.77

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.70%	12.10%

Tax rate	26.60%	36.00%
Debt/Equity ratio	0.72	0.72
Cost of debt	4.00%	8.60%

After-tax WACC	6.3%	9.4%


Selected WACC	7.8%

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 (10.40%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.5) + 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.