KGH.WA WACC - Weighted Average Cost of Capital

The WACC of KGHM Polska Miedz SA (KGH.WA) is 11.2%.

The Cost of Equity of KGHM Polska Miedz SA (KGH.WA) is 13.00%.

The Cost of Debt of KGHM Polska Miedz SA (KGH.WA) is 5.05%.

	Range	Selected
Cost of equity	11.30% - 14.70%	13.00%
Tax rate	24.40% - 29.80%	27.10%
Cost of debt	4.00% - 6.10%	5.05%
WACC	9.7% - 12.6%	11.2%

WACC

KGH.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.92	1.12

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.30%	14.70%

Tax rate	24.40%	29.80%
Debt/Equity ratio	0.25	0.25
Cost of debt	4.00%	6.10%

After-tax WACC	9.7%	12.6%


Selected WACC	11.2%

KGH.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 KGH.WA:

cost_of_equity (13.00%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.92) + 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.