KRU.WA WACC - Weighted Average Cost of Capital

The WACC of Kruk SA (KRU.WA) is 10.0%.

The Cost of Equity of Kruk SA (KRU.WA) is 11.55%.

The Cost of Debt of Kruk SA (KRU.WA) is 8.45%.

	Range	Selected
Cost of equity	9.80% - 13.30%	11.55%
Tax rate	6.60% - 8.20%	7.40%
Cost of debt	7.20% - 9.70%	8.45%
WACC	8.6% - 11.5%	10.0%

WACC

KRU.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.68	0.92

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.80%	13.30%

Tax rate	6.60%	8.20%
Debt/Equity ratio	0.69	0.69
Cost of debt	7.20%	9.70%

After-tax WACC	8.6%	11.5%


Selected WACC	10.0%

KRU.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 KRU.WA:

cost_of_equity (11.55%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.68) + 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.