KGL.WA WACC - Weighted Average Cost of Capital

The WACC of Korporacja KGL SA (KGL.WA) is 7.1%.

The Cost of Equity of Korporacja KGL SA (KGL.WA) is 10.95%.

The Cost of Debt of Korporacja KGL SA (KGL.WA) is 5.00%.

	Range	Selected
Cost of equity	8.40% - 13.50%	10.95%
Tax rate	20.80% - 22.40%	21.60%
Cost of debt	5.00% - 5.00%	5.00%
WACC	5.9% - 8.2%	7.1%

WACC

KGL.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.45	0.95

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.40%	13.50%

Tax rate	20.80%	22.40%
Debt/Equity ratio	1.23	1.23
Cost of debt	5.00%	5.00%

After-tax WACC	5.9%	8.2%


Selected WACC	7.1%

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 (10.95%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.45) + 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.