MEX.WA WACC - Weighted Average Cost of Capital

The WACC of Mex Polska SA (MEX.WA) is 8.1%.

The Cost of Equity of Mex Polska SA (MEX.WA) is 11.40%.

The Cost of Debt of Mex Polska SA (MEX.WA) is 6.75%.

	Range	Selected
Cost of equity	9.30% - 13.50%	11.40%
Tax rate	6.50% - 8.10%	7.30%
Cost of debt	4.40% - 9.10%	6.75%
WACC	5.9% - 10.2%	8.1%

WACC

MEX.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.59	0.96

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.30%	13.50%

Tax rate	6.50%	8.10%
Debt/Equity ratio	1.84	1.84
Cost of debt	4.40%	9.10%

After-tax WACC	5.9%	10.2%


Selected WACC	8.1%

MEX.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 MEX.WA:

cost_of_equity (11.40%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.59) + 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.