PHR.WA
Pharmena SA
Price:  
4.39 
PLN
Volume:  
3,109.00
Poland | Personal Products
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PHR.WA WACC - Weighted Average Cost of Capital

The WACC of Pharmena SA (PHR.WA) is 10.8%.

The Cost of Equity of Pharmena SA (PHR.WA) is 11.00%.
The Cost of Debt of Pharmena SA (PHR.WA) is 10.70%.

Range Selected
Cost of equity 9.30% - 12.70% 11.00%
Tax rate 7.90% - 10.60% 9.25%
Cost of debt 7.00% - 14.40% 10.70%
WACC 8.9% - 12.7% 10.8%
WACC

PHR.WA WACC calculation

Category Low High
Long-term bond rate 5.5% 6.0%
Equity market risk premium 6.3% 7.3%
Adjusted beta 0.6 0.85
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.30% 12.70%
Tax rate 7.90% 10.60%
Debt/Equity ratio 0.19 0.19
Cost of debt 7.00% 14.40%
After-tax WACC 8.9% 12.7%
Selected WACC 10.8%

PHR.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 PHR.WA:

cost_of_equity (11.00%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.6) + 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.