GRC.WA WACC - Weighted Average Cost of Capital

The WACC of Grupa Recykl SA (GRC.WA) is 8.7%.

The Cost of Equity of Grupa Recykl SA (GRC.WA) is 9.60%.

The Cost of Debt of Grupa Recykl SA (GRC.WA) is 7.80%.

	Range	Selected
Cost of equity	8.20% - 11.00%	9.60%
Tax rate	17.80% - 19.00%	18.40%
Cost of debt	7.20% - 8.40%	7.80%
WACC	7.6% - 9.8%	8.7%

WACC

GRC.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.43	0.61

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.20%	11.00%

Tax rate	17.80%	19.00%
Debt/Equity ratio	0.39	0.39
Cost of debt	7.20%	8.40%

After-tax WACC	7.6%	9.8%


Selected WACC	8.7%

GRC.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 GRC.WA:

cost_of_equity (9.60%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.43) + 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.