GNB.WA WACC - Weighted Average Cost of Capital
The WACC of Getin Noble Bank SA (GNB.WA) is 7.4%.
| Range | Selected | |
| Cost of equity | 17.6% - 25.1% | 21.35% |
| Tax rate | 11.5% - 13.8% | 12.65% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.8% - 8.0% | 7.4% |
| Category | Low | High |
| Long-term bond rate | 5.5% | 6.0% |
| Equity market risk premium | 6.3% | 7.3% |
| Adjusted beta | 1.9 | 2.54 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 17.6% | 25.1% |
| Tax rate | 11.5% | 13.8% |
| Debt/Equity ratio | 4.6 | 4.6 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.8% | 8.0% |
| Selected WACC | 7.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| GNB.WA | Getin Noble Bank SA | 4.6 | 1.55 | 0.31 |
| ALR.WA | Alior Bank SA | 0.19 | 1.41 | 1.21 |
| BGEO.L | Bank of Georgia Group PLC | 0.85 | 1.27 | 0.73 |
| CRG.MI | Banca Carige SpA Cassa di Risparmio di Genova e Imperia | 4.34 | 0.92 | 0.19 |
| IL0A.IR | Permanent TSB Group Holdings PLC | 0.81 | 0.98 | 0.58 |
| KOMP.OL | Komplett Bank ASA | 0.08 | 1.88 | 1.75 |
| PCZ.DE | ProCredit Holding AG & Co KGaA | 0.7 | 0.98 | 0.61 |
| SOR.OL | Sparebanken Sor | 9.05 | 0.59 | 0.07 |
| SVEG.OL | Sparebanken Vest | 11.36 | 0.71 | 0.07 |
| TBCG.L | TBC Bank Group PLC | 1 | 1.5 | 0.8 |
| Low | High | |
| Unlevered beta | 0.47 | 0.66 |
| Relevered beta | 2.34 | 3.3 |
| Adjusted relevered beta | 1.9 | 2.54 |
GNB.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 GNB.WA:
cost_of_equity (21.35%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (1.9) + 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.