GRN.WA WACC - Weighted Average Cost of Capital
The WACC of Grodno SA (GRN.WA) is 7.5%.
| Range | Selected | |
| Cost of equity | 7.9% - 9.4% | 8.65% |
| Tax rate | 20.3% - 21.3% | 20.8% |
| Cost of debt | 6.4% - 7.0% | 6.7% |
| WACC | 6.9% - 8.0% | 7.5% |
| Category | Low | High |
| Long-term bond rate | 5.5% | 6.0% |
| Equity market risk premium | 6.3% | 7.3% |
| Adjusted beta | 0.39 | 0.39 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.9% | 9.4% |
| Tax rate | 20.3% | 21.3% |
| Debt/Equity ratio | 0.55 | 0.55 |
| Cost of debt | 6.4% | 7.0% |
| After-tax WACC | 6.9% | 8.0% |
| Selected WACC | 7.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| GRN.WA | Grodno SA | 0.55 | 0.45 | 0.32 |
| BRG.WA | Berling SA | 0.08 | -0.1 | -0.1 |
| ELTON.AT | Elton SA | 0.56 | 0.44 | 0.3 |
| FLO.L | Flowtech Fluidpower PLC | 0.67 | 0.08 | 0.05 |
| FNM.ST | Ferronordic AB | 3.51 | 0.25 | 0.07 |
| K1R.DE | KROMI Logistik AG | 0.07 | 0.06 | 0.06 |
| KCH.WA | Krakchemia SA | 0.63 | -0.4 | -0.27 |
| KGL.WA | Korporacja KGL SA | 1.14 | -0.11 | -0.06 |
| TIM.WA | Tim SA | 0.16 | 0.2 | 0.18 |
| VOSYS.AT | Vogiatzoglou Systems SA | 0.48 | 0.08 | 0.06 |
| Low | High | |
| Unlevered beta | 0.06 | 0.06 |
| Relevered beta | 0.09 | 0.09 |
| Adjusted relevered beta | 0.39 | 0.39 |
GRN.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 GRN.WA:
cost_of_equity (8.65%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.39) + 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.