PKP.WA WACC - Weighted Average Cost of Capital

The WACC of PKP Cargo SA (PKP.WA) is 7.3%.

The Cost of Equity of PKP Cargo SA (PKP.WA) is 18.55%.

The Cost of Debt of PKP Cargo SA (PKP.WA) is 5.50%.

	Range	Selected
Cost of equity	16.50% - 20.60%	18.55%
Tax rate	20.10% - 26.10%	23.10%
Cost of debt	4.00% - 7.00%	5.50%
WACC	6.0% - 8.5%	7.3%

WACC

PKP.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	1.73	1.92

Additional risk adjustments	0.0%	0.5%
Cost of equity	16.50%	20.60%

Tax rate	20.10%	26.10%
Debt/Equity ratio	3.66	3.66
Cost of debt	4.00%	7.00%

After-tax WACC	6.0%	8.5%


Selected WACC	7.3%

PKP.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 PKP.WA:

cost_of_equity (18.55%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (1.73) + 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.