KCH.WA WACC - Weighted Average Cost of Capital

The WACC of Krakchemia SA (KCH.WA) is 7.5%.

The Cost of Equity of Krakchemia SA (KCH.WA) is 8.55%.

The Cost of Debt of Krakchemia SA (KCH.WA) is 7.10%.

	Range	Selected
Cost of equity	7.60% - 9.50%	8.55%
Tax rate	10.00% - 20.40%	15.20%
Cost of debt	7.00% - 7.20%	7.10%
WACC	7.1% - 8.0%	7.5%

WACC

KCH.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.32	0.4

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.60%	9.50%

Tax rate	10.00%	20.40%
Debt/Equity ratio	0.66	0.66
Cost of debt	7.00%	7.20%

After-tax WACC	7.1%	8.0%


Selected WACC	7.5%

KCH.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 KCH.WA:

cost_of_equity (8.55%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.32) + 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.