PBX.WA WACC - Weighted Average Cost of Capital

The WACC of Poznanska Korporacja Budowlana Pekabex SA (PBX.WA) is 9.9%.

The Cost of Equity of Poznanska Korporacja Budowlana Pekabex SA (PBX.WA) is 11.50%.

The Cost of Debt of Poznanska Korporacja Budowlana Pekabex SA (PBX.WA) is 9.10%.

	Range	Selected
Cost of equity	10.00% - 13.00%	11.50%
Tax rate	16.90% - 17.80%	17.35%
Cost of debt	7.50% - 10.70%	9.10%
WACC	8.5% - 11.3%	9.9%

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	0.71	0.88

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.00%	13.00%

Tax rate	16.90%	17.80%
Debt/Equity ratio	0.67	0.67
Cost of debt	7.50%	10.70%

After-tax WACC	8.5%	11.3%


Selected WACC	9.9%

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 (11.50%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.71) + 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.