KGL.WA
Korporacja KGL SA
Price:  
15.3 
PLN
Volume:  
2,451
Poland | Trading Companies & Distributors

KGL.WA WACC - Weighted Average Cost of Capital

The WACC of Korporacja KGL SA (KGL.WA) is 6.0%.

The Cost of Equity of Korporacja KGL SA (KGL.WA) is 8.65%.
The Cost of Debt of Korporacja KGL SA (KGL.WA) is 5%.

RangeSelected
Cost of equity7.7% - 9.6%8.65%
Tax rate20.0% - 22.4%21.2%
Cost of debt5.0% - 5.0%5%
WACC5.6% - 6.4%6.0%
WACC

KGL.WA WACC calculation

CategoryLowHigh
Long-term bond rate5.5%6.0%
Equity market risk premium6.3%7.3%
Adjusted beta0.350.42
Additional risk adjustments0.0%0.5%
Cost of equity7.7%9.6%
Tax rate20.0%22.4%
Debt/Equity ratio
1.261.26
Cost of debt5.0%5.0%
After-tax WACC5.6%6.4%
Selected WACC6.0%

KGL.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 KGL.WA:

cost_of_equity (8.65%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.35) + 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.