EFK.WA WACC - Weighted Average Cost of Capital

The WACC of Korporacja Gospodarcza Efekt SA (EFK.WA) is 6.7%.

The Cost of Equity of Korporacja Gospodarcza Efekt SA (EFK.WA) is 10.95%.

The Cost of Debt of Korporacja Gospodarcza Efekt SA (EFK.WA) is 5.60%.

	Range	Selected
Cost of equity	9.00% - 12.90%	10.95%
Tax rate	20.80% - 23.20%	22.00%
Cost of debt	5.10% - 6.10%	5.60%
WACC	5.8% - 7.7%	6.7%

WACC

EFK.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.55	0.88

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.00%	12.90%

Tax rate	20.80%	23.20%
Debt/Equity ratio	1.77	1.77
Cost of debt	5.10%	6.10%

After-tax WACC	5.8%	7.7%


Selected WACC	6.7%

EFK.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 EFK.WA:

cost_of_equity (10.95%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.55) + 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.