KPD.WA WACC - Weighted Average Cost of Capital

The WACC of Koszalinskie Przedsiebiorstwo Przemyslu Drzewnego SA (KPD.WA) is 9.6%.

The Cost of Equity of Koszalinskie Przedsiebiorstwo Przemyslu Drzewnego SA (KPD.WA) is 10.40%.

The Cost of Debt of Koszalinskie Przedsiebiorstwo Przemyslu Drzewnego SA (KPD.WA) is 5.50%.

	Range	Selected
Cost of equity	9.10% - 11.70%	10.40%
Tax rate	18.80% - 19.50%	19.15%
Cost of debt	4.00% - 7.00%	5.50%
WACC	8.4% - 10.9%	9.6%

WACC

KPD.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.56	0.7

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.10%	11.70%

Tax rate	18.80%	19.50%
Debt/Equity ratio	0.14	0.14
Cost of debt	4.00%	7.00%

After-tax WACC	8.4%	10.9%


Selected WACC	9.6%

KPD.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 KPD.WA:

cost_of_equity (10.40%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.56) + 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.