GKI.WA WACC - Weighted Average Cost of Capital

The WACC of Grupa Kapitalowa Immobile SA (GKI.WA) is 13.6%.

The Cost of Equity of Grupa Kapitalowa Immobile SA (GKI.WA) is 16.85%.

The Cost of Debt of Grupa Kapitalowa Immobile SA (GKI.WA) is 15.20%.

	Range	Selected
Cost of equity	14.60% - 19.10%	16.85%
Tax rate	19.00% - 19.00%	19.00%
Cost of debt	4.90% - 25.50%	15.20%
WACC	7.0% - 20.2%	13.6%

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	1.44	1.71

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.60%	19.10%

Tax rate	19.00%	19.00%
Debt/Equity ratio	2.54	2.54
Cost of debt	4.90%	25.50%

After-tax WACC	7.0%	20.2%


Selected WACC	13.6%

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 (16.85%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (1.44) + 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.