KRC.WA WACC - Weighted Average Cost of Capital

The WACC of Krynicki Recykling SA (KRC.WA) is 8.8%.

The Cost of Equity of Krynicki Recykling SA (KRC.WA) is 9.55%.

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

	Range	Selected
Cost of equity	8.20% - 10.90%	9.55%
Tax rate	14.80% - 17.90%	16.35%
Cost of debt	4.00% - 7.00%	5.50%
WACC	7.5% - 10.1%	8.8%

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	0.43	0.59

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.20%	10.90%

Tax rate	14.80%	17.90%
Debt/Equity ratio	0.17	0.17
Cost of debt	4.00%	7.00%

After-tax WACC	7.5%	10.1%


Selected WACC	8.8%

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 (9.55%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.43) + 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.