EUC.WA
Europejskie Centrum Odszkodowan SA
Price:  
5.08 
PLN
Volume:  
128,599
Poland | Insurance

EUC.WA WACC - Weighted Average Cost of Capital

The WACC of Europejskie Centrum Odszkodowan SA (EUC.WA) is 9.8%.

The Cost of Equity of Europejskie Centrum Odszkodowan SA (EUC.WA) is 14.45%.
The Cost of Debt of Europejskie Centrum Odszkodowan SA (EUC.WA) is 6.1%.

RangeSelected
Cost of equity12.6% - 16.3%14.45%
Tax rate2.7% - 5.3%4%
Cost of debt6.1% - 6.1%6.1%
WACC9.0% - 10.6%9.8%
WACC

EUC.WA WACC calculation

CategoryLowHigh
Long-term bond rate5.5%6.0%
Equity market risk premium6.3%7.3%
Adjusted beta1.121.34
Additional risk adjustments0.0%0.5%
Cost of equity12.6%16.3%
Tax rate2.7%5.3%
Debt/Equity ratio
1.191.19
Cost of debt6.1%6.1%
After-tax WACC9.0%10.6%
Selected WACC9.8%

EUC.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 EUC.WA:

cost_of_equity (14.45%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (1.12) + 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.