PCE.WA WACC - Weighted Average Cost of Capital

The WACC of Grupa Azoty Zaklady Chemiczne Police SA (PCE.WA) is 14.0%.

The Cost of Equity of Grupa Azoty Zaklady Chemiczne Police SA (PCE.WA) is 14.45%.

The Cost of Debt of Grupa Azoty Zaklady Chemiczne Police SA (PCE.WA) is 15.90%.

	Range	Selected
Cost of equity	12.70% - 16.20%	14.45%
Tax rate	12.10% - 16.10%	14.10%
Cost of debt	9.30% - 22.50%	15.90%
WACC	10.4% - 17.6%	14.0%

WACC

PCE.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	1.14	1.33

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.70%	16.20%

Tax rate	12.10%	16.10%
Debt/Equity ratio	1.05	1.05
Cost of debt	9.30%	22.50%

After-tax WACC	10.4%	17.6%


Selected WACC	14.0%

PCE.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 PCE.WA:

cost_of_equity (14.45%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (1.14) + 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.