NET.WA
Netia SA
Price:  
6.94 
PLN
Volume:  
11,810
Poland | Diversified Telecommunication Services

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 12.2%.
The Cost of Debt of Netia SA (NET.WA) is 7%.

RangeSelected
Cost of equity11.1% - 13.3%12.2%
Tax rate25.1% - 36.4%30.75%
Cost of debt4.0% - 10.0%7%
WACC9.4% - 11.8%10.6%
WACC

NET.WA WACC calculation

CategoryLowHigh
Long-term bond rate7.2%7.7%
Equity market risk premium5.6%6.6%
Adjusted beta0.690.77
Additional risk adjustments0.0%0.5%
Cost of equity11.1%13.3%
Tax rate25.1%36.4%
Debt/Equity ratio
0.270.27
Cost of debt4.0%10.0%
After-tax WACC9.4%11.8%
Selected WACC10.6%

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.