MSW.WA WACC - Weighted Average Cost of Capital

The WACC of Mostostal Warszawa SA (MSW.WA) is 6.8%.

The Cost of Equity of Mostostal Warszawa SA (MSW.WA) is 10.70%.

The Cost of Debt of Mostostal Warszawa SA (MSW.WA) is 5.95%.

	Range	Selected
Cost of equity	9.20% - 12.20%	10.70%
Tax rate	30.00% - 31.20%	30.60%
Cost of debt	4.90% - 7.00%	5.95%
WACC	5.8% - 7.8%	6.8%

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	0.58	0.77

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.20%	12.20%

Tax rate	30.00%	31.20%
Debt/Equity ratio	1.46	1.46
Cost of debt	4.90%	7.00%

After-tax WACC	5.8%	7.8%


Selected WACC	6.8%

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 (10.70%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.58) + 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.