MAK.WA WACC - Weighted Average Cost of Capital

The WACC of Makarony Polskie SA (MAK.WA) is 10.9%.

The Cost of Equity of Makarony Polskie SA (MAK.WA) is 11.55%.

The Cost of Debt of Makarony Polskie SA (MAK.WA) is 5.05%.

	Range	Selected
Cost of equity	9.90% - 13.20%	11.55%
Tax rate	20.70% - 21.80%	21.25%
Cost of debt	4.00% - 6.10%	5.05%
WACC	9.3% - 12.5%	10.9%

WACC

MAK.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.69	0.91

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.90%	13.20%

Tax rate	20.70%	21.80%
Debt/Equity ratio	0.09	0.09
Cost of debt	4.00%	6.10%

After-tax WACC	9.3%	12.5%


Selected WACC	10.9%

MAK.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 MAK.WA:

cost_of_equity (11.55%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.69) + 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.