PEO.WA
Bank Polska Kasa Opieki SA
Price:  
178.40 
PLN
Volume:  
929,465.00
Poland | Banks
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PEO.WA WACC - Weighted Average Cost of Capital

The WACC of Bank Polska Kasa Opieki SA (PEO.WA) is 9.9%.

The Cost of Equity of Bank Polska Kasa Opieki SA (PEO.WA) is 12.80%.
The Cost of Debt of Bank Polska Kasa Opieki SA (PEO.WA) is 5.00%.

Range Selected
Cost of equity 10.20% - 15.40% 12.80%
Tax rate 25.40% - 30.90% 28.15%
Cost of debt 5.00% - 5.00% 5.00%
WACC 8.2% - 11.7% 9.9%
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 0.74 1.21
Additional risk adjustments 0.0% 0.5%
Cost of equity 10.20% 15.40%
Tax rate 25.40% 30.90%
Debt/Equity ratio 0.45 0.45
Cost of debt 5.00% 5.00%
After-tax WACC 8.2% 11.7%
Selected WACC 9.9%

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 (12.80%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.74) + 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.