GKI.WA WACC - Weighted Average Cost of Capital

The WACC of Grupa Kapitalowa Immobile SA (GKI.WA) is 8.3%.

The Cost of Equity of Grupa Kapitalowa Immobile SA (GKI.WA) is 14.60%.

The Cost of Debt of Grupa Kapitalowa Immobile SA (GKI.WA) is 8.20%.

	Range	Selected
Cost of equity	12.80% - 16.40%	14.60%
Tax rate	34.30% - 43.20%	38.75%
Cost of debt	5.70% - 10.70%	8.20%
WACC	6.9% - 9.7%	8.3%

WACC

GKI.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	1.15	1.35

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.80%	16.40%

Tax rate	34.30%	43.20%
Debt/Equity ratio	1.85	1.85
Cost of debt	5.70%	10.70%

After-tax WACC	6.9%	9.7%


Selected WACC	8.3%

GKI.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 GKI.WA:

cost_of_equity (14.60%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (1.15) + 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.