KME.WA WACC - Weighted Average Cost of Capital

The WACC of Kancelaria Medius SA w restrukturyzacji (KME.WA) is 8.4%.

The Cost of Equity of Kancelaria Medius SA w restrukturyzacji (KME.WA) is 12.75%.

The Cost of Debt of Kancelaria Medius SA w restrukturyzacji (KME.WA) is 5.00%.

	Range	Selected
Cost of equity	9.30% - 16.20%	12.75%
Tax rate	-% - 0.30%	0.15%
Cost of debt	5.00% - 5.00%	5.00%
WACC	6.8% - 9.9%	8.4%

WACC

KME.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.59	1.33

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.30%	16.20%

Tax rate	-%	0.30%
Debt/Equity ratio	1.3	1.3
Cost of debt	5.00%	5.00%

After-tax WACC	6.8%	9.9%


Selected WACC	8.4%

KME.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 KME.WA:

cost_of_equity (12.75%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.59) + 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.