PCE.WA WACC - Weighted Average Cost of Capital

The WACC of Grupa Azoty Zaklady Chemiczne Police SA (PCE.WA) is 11.5%.

The Cost of Equity of Grupa Azoty Zaklady Chemiczne Police SA (PCE.WA) is 13.85%.

The Cost of Debt of Grupa Azoty Zaklady Chemiczne Police SA (PCE.WA) is 8.95%.

	Range	Selected
Cost of equity	12.60% - 15.10%	13.85%
Tax rate	16.10% - 18.00%	17.05%
Cost of debt	7.00% - 10.90%	8.95%
WACC	10.1% - 12.8%	11.5%

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	1.12	1.17

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.60%	15.10%

Tax rate	16.10%	18.00%
Debt/Equity ratio	0.59	0.59
Cost of debt	7.00%	10.90%

After-tax WACC	10.1%	12.8%


Selected WACC	11.5%

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 (13.85%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (1.12) + 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.