PCE.WA
Grupa Azoty Zaklady Chemiczne Police SA
Price:  
9.20 
PLN
Volume:  
1,383.00
Poland | Chemicals
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PCE.WA WACC - Weighted Average Cost of Capital

The WACC of Grupa Azoty Zaklady Chemiczne Police SA (PCE.WA) is 11.0%.

The Cost of Equity of Grupa Azoty Zaklady Chemiczne Police SA (PCE.WA) is 14.60%.
The Cost of Debt of Grupa Azoty Zaklady Chemiczne Police SA (PCE.WA) is 8.15%.

Range Selected
Cost of equity 13.40% - 15.80% 14.60%
Tax rate 12.10% - 16.10% 14.10%
Cost of debt 7.00% - 9.30% 8.15%
WACC 9.9% - 12.0% 11.0%
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 1.24 1.27
Additional risk adjustments 0.0% 0.5%
Cost of equity 13.40% 15.80%
Tax rate 12.10% 16.10%
Debt/Equity ratio 0.92 0.92
Cost of debt 7.00% 9.30%
After-tax WACC 9.9% 12.0%
Selected WACC 11.0%

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 (14.60%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (1.24) + 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.