KPD.WA WACC - Weighted Average Cost of Capital
The WACC of Koszalinskie Przedsiebiorstwo Przemyslu Drzewnego SA (KPD.WA) is 9.6%.
| Range | Selected | |
| Cost of equity | 9.1% - 11.4% | 10.25% |
| Tax rate | 18.8% - 19.5% | 19.15% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 8.4% - 10.7% | 9.6% |
| Category | Low | High |
| Long-term bond rate | 5.5% | 6.0% |
| Equity market risk premium | 6.3% | 7.3% |
| Adjusted beta | 0.56 | 0.67 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.1% | 11.4% |
| Tax rate | 18.8% | 19.5% |
| Debt/Equity ratio | 0.13 | 0.13 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 8.4% | 10.7% |
| Selected WACC | 9.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| KPD.WA | Koszalinskie Przedsiebiorstwo Przemyslu Drzewnego SA | 0.13 | 0.03 | 0.02 |
| AKRIT.AT | Akritas AE | 1.47 | 0.86 | 0.39 |
| ALMOU.PA | Moulinvest SA | 0.86 | 0.85 | 0.5 |
| AXS.L | Accsys Technologies PLC | 0.47 | 0.03 | 0.03 |
| BRG B.ST | Bergs Timber AB (publ) | 0.16 | 0.21 | 0.19 |
| CPHN.SW | CPH Chemie und Papier Holding AG | 0.05 | 0.55 | 0.53 |
| DLX.DE | Delignit AG | 0.06 | 0.16 | 0.15 |
| RROS.ST | Rottneros AB | 0.56 | 0.62 | 0.43 |
| SCA B.ST | Svenska Cellulosa SCA AB | 0.16 | 0.63 | 0.56 |
| SONI.LS | Sonae Industria SGPS SA | 2.1 | 1.34 | 0.5 |
| Low | High | |
| Unlevered beta | 0.31 | 0.46 |
| Relevered beta | 0.34 | 0.51 |
| Adjusted relevered beta | 0.56 | 0.67 |
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 (10.25%) = 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.