KRC.WA
Krynicki Recykling SA
Price:  
22.70 
PLN
Volume:  
11.00
Poland | Commercial Services & Supplies
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KRC.WA WACC - Weighted Average Cost of Capital

The WACC of Krynicki Recykling SA (KRC.WA) is 8.9%.

The Cost of Equity of Krynicki Recykling SA (KRC.WA) is 9.65%.
The Cost of Debt of Krynicki Recykling SA (KRC.WA) is 5.50%.

Range Selected
Cost of equity 8.60% - 10.70% 9.65%
Tax rate 14.80% - 17.90% 16.35%
Cost of debt 4.00% - 7.00% 5.50%
WACC 7.9% - 9.9% 8.9%
WACC

KRC.WA WACC calculation

Category Low High
Long-term bond rate 5.5% 6.0%
Equity market risk premium 6.3% 7.3%
Adjusted beta 0.49 0.57
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.60% 10.70%
Tax rate 14.80% 17.90%
Debt/Equity ratio 0.17 0.17
Cost of debt 4.00% 7.00%
After-tax WACC 7.9% 9.9%
Selected WACC 8.9%

KRC.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 KRC.WA:

cost_of_equity (9.65%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.49) + 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.