MSW.WA WACC - Weighted Average Cost of Capital

The WACC of Mostostal Warszawa SA (MSW.WA) is 10.5%.

The Cost of Equity of Mostostal Warszawa SA (MSW.WA) is 10.60%.

The Cost of Debt of Mostostal Warszawa SA (MSW.WA) is 15.50%.

	Range	Selected
Cost of equity	9.30% - 11.90%	10.60%
Tax rate	31.70% - 32.60%	32.15%
Cost of debt	5.50% - 25.50%	15.50%
WACC	5.8% - 15.2%	10.5%

WACC

MSW.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	0.73

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.30%	11.90%

Tax rate	31.70%	32.60%
Debt/Equity ratio	1.66	1.66
Cost of debt	5.50%	25.50%

After-tax WACC	5.8%	15.2%


Selected WACC	10.5%

MSW.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 MSW.WA:

cost_of_equity (10.60%) = 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.