PEO.WA WACC - Weighted Average Cost of Capital

The WACC of Bank Polska Kasa Opieki SA (PEO.WA) is 10.4%.

The Cost of Equity of Bank Polska Kasa Opieki SA (PEO.WA) is 13.15%.

The Cost of Debt of Bank Polska Kasa Opieki SA (PEO.WA) is 5.00%.

	Range	Selected
Cost of equity	10.90% - 15.40%	13.15%
Tax rate	22.00% - 24.30%	23.15%
Cost of debt	5.00% - 5.00%	5.00%
WACC	8.9% - 12.0%	10.4%

WACC

PEO.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.85	1.21

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.90%	15.40%

Tax rate	22.00%	24.30%
Debt/Equity ratio	0.41	0.41
Cost of debt	5.00%	5.00%

After-tax WACC	8.9%	12.0%


Selected WACC	10.4%

PEO.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 PEO.WA:

cost_of_equity (13.15%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.85) + 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.