INW.WA WACC - Weighted Average Cost of Capital

The WACC of Inwestycje.pl SA (INW.WA) is 11.4%.

The Cost of Equity of Inwestycje.pl SA (INW.WA) is 11.55%.

The Cost of Debt of Inwestycje.pl SA (INW.WA) is 6.10%.

	Range	Selected
Cost of equity	9.90% - 13.20%	11.55%
Tax rate	11.00% - 17.40%	14.20%
Cost of debt	5.20% - 7.00%	6.10%
WACC	9.8% - 13.1%	11.4%

WACC

INW.WA WACC calculation

Category	Low	High

Long-term bond rate	7.2%	7.7%
Equity market risk premium	5.6%	6.6%
Adjusted beta	0.47	0.75

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.90%	13.20%

Tax rate	11.00%	17.40%
Debt/Equity ratio	0.01	0.01
Cost of debt	5.20%	7.00%

After-tax WACC	9.8%	13.1%


Selected WACC	11.4%

INW.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 INW.WA:

cost_of_equity (11.55%) = risk_free_rate (7.45%) + equity_risk_premium (6.10%) * adjusted_beta (0.47) + 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.