PLX.WA WACC - Weighted Average Cost of Capital

The WACC of Przetworstwo Tworzyw Sztucznych Plast-Box SA (PLX.WA) is 10.2%.

The Cost of Equity of Przetworstwo Tworzyw Sztucznych Plast-Box SA (PLX.WA) is 12.50%.

The Cost of Debt of Przetworstwo Tworzyw Sztucznych Plast-Box SA (PLX.WA) is 8.10%.

	Range	Selected
Cost of equity	11.20% - 13.80%	12.50%
Tax rate	22.10% - 23.20%	22.65%
Cost of debt	8.10% - 8.10%	8.10%
WACC	9.4% - 11.0%	10.2%

WACC

PLX.WA WACC calculation

Category	Low	High

Long-term bond rate	7.2%	7.7%
Equity market risk premium	5.6%	6.6%
Adjusted beta	0.71	0.85

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.20%	13.80%

Tax rate	22.10%	23.20%
Debt/Equity ratio	0.57	0.57
Cost of debt	8.10%	8.10%

After-tax WACC	9.4%	11.0%


Selected WACC	10.2%

PLX.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 PLX.WA:

cost_of_equity (12.50%) = risk_free_rate (7.45%) + equity_risk_premium (6.10%) * adjusted_beta (0.71) + 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.