PEO.WA WACC - Weighted Average Cost of Capital

The WACC of Bank Polska Kasa Opieki SA (PEO.WA) is 11.5%.

The Cost of Equity of Bank Polska Kasa Opieki SA (PEO.WA) is 15.10%.

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

	Range	Selected
Cost of equity	13.30% - 16.90%	15.10%
Tax rate	25.40% - 30.90%	28.15%
Cost of debt	5.00% - 5.00%	5.00%
WACC	10.3% - 12.7%	11.5%

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	1.24	1.41

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.30%	16.90%

Tax rate	25.40%	30.90%
Debt/Equity ratio	0.45	0.45
Cost of debt	5.00%	5.00%

After-tax WACC	10.3%	12.7%


Selected WACC	11.5%

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 (15.10%) = 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.