LWB.WA WACC - Weighted Average Cost of Capital

The WACC of Lubelski Wegiel Bogdanka SA (LWB.WA) is 12.5%.

The Cost of Equity of Lubelski Wegiel Bogdanka SA (LWB.WA) is 12.50%.

The Cost of Debt of Lubelski Wegiel Bogdanka SA (LWB.WA) is 15.50%.

	Range	Selected
Cost of equity	10.60% - 14.40%	12.50%
Tax rate	19.50% - 19.80%	19.65%
Cost of debt	6.10% - 24.90%	15.50%
WACC	10.3% - 14.6%	12.5%

WACC

LWB.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.8	1.07

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.60%	14.40%

Tax rate	19.50%	19.80%
Debt/Equity ratio	0.05	0.05
Cost of debt	6.10%	24.90%

After-tax WACC	10.3%	14.6%


Selected WACC	12.5%

LWB.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 LWB.WA:

cost_of_equity (12.50%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.8) + 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.