MEX.WA WACC - Weighted Average Cost of Capital

The WACC of Mex Polska SA (MEX.WA) is 8.0%.

The Cost of Equity of Mex Polska SA (MEX.WA) is 11.35%.

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

	Range	Selected
Cost of equity	9.50% - 13.20%	11.35%
Tax rate	6.50% - 8.10%	7.30%
Cost of debt	4.40% - 9.10%	6.75%
WACC	6.0% - 10.1%	8.0%

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	0.63	0.92

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.50%	13.20%

Tax rate	6.50%	8.10%
Debt/Equity ratio	1.85	1.85
Cost of debt	4.40%	9.10%

After-tax WACC	6.0%	10.1%


Selected WACC	8.0%

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 (11.35%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.63) + 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.