NET.WA WACC - Weighted Average Cost of Capital

The WACC of Netia SA (NET.WA) is 10.6%.

The Cost of Equity of Netia SA (NET.WA) is 12.20%.

The Cost of Debt of Netia SA (NET.WA) is 7.00%.

	Range	Selected
Cost of equity	11.10% - 13.30%	12.20%
Tax rate	25.10% - 36.40%	30.75%
Cost of debt	4.00% - 10.00%	7.00%
WACC	9.4% - 11.8%	10.6%

WACC

NET.WA WACC calculation

Category	Low	High

Long-term bond rate	7.2%	7.7%
Equity market risk premium	5.6%	6.6%
Adjusted beta	0.69	0.77

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.10%	13.30%

Tax rate	25.10%	36.40%
Debt/Equity ratio	0.27	0.27
Cost of debt	4.00%	10.00%

After-tax WACC	9.4%	11.8%


Selected WACC	10.6%

NET.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 NET.WA:

cost_of_equity (12.20%) = risk_free_rate (7.45%) + equity_risk_premium (6.10%) * 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.