KOMB.PR WACC - Weighted Average Cost of Capital
The WACC of Komercni Banka as (KOMB.PR) is 13.6%.
| Range | Selected | |
| Cost of equity | 13.0% - 17.3% | 15.15% |
| Tax rate | 18.3% - 18.6% | 18.45% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 11.7% - 15.4% | 13.6% |
| Category | Low | High |
| Long-term bond rate | 5.4% | 5.9% |
| Equity market risk premium | 8.5% | 9.5% |
| Adjusted beta | 0.9 | 1.15 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 13.0% | 17.3% |
| Tax rate | 18.3% | 18.6% |
| Debt/Equity ratio | 0.16 | 0.16 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 11.7% | 15.4% |
| Selected WACC | 13.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| KOMB.PR | Komercni Banka as | 0.16 | 1.37 | 1.21 |
| ALR.WA | Alior Bank SA | 0.17 | 1.4 | 1.22 |
| BKT.MC | Bankinter SA | 3.64 | 1.07 | 0.27 |
| CBG.L | Close Brothers Group PLC | 4.87 | 2.51 | 0.5 |
| ING.WA | ING Bank Slaski SA | 0.07 | 1.04 | 0.99 |
| LUKN.SW | Luzerner Kantonalbank AG | 4.67 | 0.32 | 0.07 |
| MBK.WA | mBank SA | 0.53 | 1.38 | 0.96 |
| NOFI.OL | Norwegian Finans Holding ASA | 0.35 | 1.76 | 1.37 |
| PEO.WA | Bank Polska Kasa Opieki SA | 0.45 | 1.55 | 1.13 |
| SPL.WA | Santander Bank Polska SA | 0.28 | 1.18 | 0.96 |
| Low | High | |
| Unlevered beta | 0.96 | 1.05 |
| Relevered beta | 0.85 | 1.22 |
| Adjusted relevered beta | 0.9 | 1.15 |
KOMB.PR'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 KOMB.PR:
cost_of_equity (15.15%) = risk_free_rate (5.65%) + equity_risk_premium (9.00%) * adjusted_beta (0.9) + 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.