PBX.WA WACC - Weighted Average Cost of Capital

The WACC of Poznanska Korporacja Budowlana Pekabex SA (PBX.WA) is 9.2%.

The Cost of Equity of Poznanska Korporacja Budowlana Pekabex SA (PBX.WA) is 11.40%.

The Cost of Debt of Poznanska Korporacja Budowlana Pekabex SA (PBX.WA) is 7.65%.

	Range	Selected
Cost of equity	9.60% - 13.20%	11.40%
Tax rate	17.90% - 18.50%	18.20%
Cost of debt	6.20% - 9.10%	7.65%
WACC	7.6% - 10.7%	9.2%

WACC

PBX.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.65	0.92

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.60%	13.20%

Tax rate	17.90%	18.50%
Debt/Equity ratio	0.77	0.77
Cost of debt	6.20%	9.10%

After-tax WACC	7.6%	10.7%


Selected WACC	9.2%

PBX.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 PBX.WA:

cost_of_equity (11.40%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.65) + 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.