PCE.WA WACC - Weighted Average Cost of Capital

The WACC of Grupa Azoty Zaklady Chemiczne Police SA (PCE.WA) is 10.9%.

The Cost of Equity of Grupa Azoty Zaklady Chemiczne Police SA (PCE.WA) is 14.15%.

The Cost of Debt of Grupa Azoty Zaklady Chemiczne Police SA (PCE.WA) is 8.90%.

	Range	Selected
Cost of equity	11.50% - 16.80%	14.15%
Tax rate	8.40% - 12.30%	10.35%
Cost of debt	7.00% - 10.80%	8.90%
WACC	8.8% - 12.9%	10.9%

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	0.95	1.4

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.50%	16.80%

Tax rate	8.40%	12.30%
Debt/Equity ratio	1.13	1.13
Cost of debt	7.00%	10.80%

After-tax WACC	8.8%	12.9%


Selected WACC	10.9%

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 (14.15%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.95) + 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.