GX1.WA
Genxone SA
Price:  
5.54 
PLN
Volume:  
1,471
Poland | Manufacturing

GX1.WA WACC - Weighted Average Cost of Capital

The WACC of Genxone SA (GX1.WA) is 7.0%.

The Cost of Equity of Genxone SA (GX1.WA) is 9.65%.
The Cost of Debt of Genxone SA (GX1.WA) is 5%.

RangeSelected
Cost of equity7.9% - 11.4%9.65%
Tax rate10.1% - 17.0%13.55%
Cost of debt5.0% - 5.0%5%
WACC6.2% - 7.8%7.0%
WACC

GX1.WA WACC calculation

CategoryLowHigh
Long-term bond rate5.5%6.0%
Equity market risk premium6.3%7.3%
Adjusted beta0.380.67
Additional risk adjustments0.0%0.5%
Cost of equity7.9%11.4%
Tax rate10.1%17.0%
Debt/Equity ratio
11
Cost of debt5.0%5.0%
After-tax WACC6.2%7.8%
Selected WACC7.0%

GX1.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 GX1.WA:

cost_of_equity (9.65%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.38) + 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.