CPS.WA WACC - Weighted Average Cost of Capital

The WACC of Cyfrowy Polsat SA (CPS.WA) is 9.3%.

The Cost of Equity of Cyfrowy Polsat SA (CPS.WA) is 11.15%.

The Cost of Debt of Cyfrowy Polsat SA (CPS.WA) is 10.30%.

	Range	Selected
Cost of equity	9.50% - 12.80%	11.15%
Tax rate	21.50% - 23.70%	22.60%
Cost of debt	6.60% - 14.00%	10.30%
WACC	7.1% - 11.6%	9.3%

WACC

CPS.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.63	0.85

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.50%	12.80%

Tax rate	21.50%	23.70%
Debt/Equity ratio	1.31	1.31
Cost of debt	6.60%	14.00%

After-tax WACC	7.1%	11.6%


Selected WACC	9.3%

CPS.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 CPS.WA:

cost_of_equity (11.15%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.63) + 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.