POLY.TA WACC - Weighted Average Cost of Capital
The WACC of Polygon Real Estate Ltd (POLY.TA) is 6.9%.
| Range | Selected | |
| Cost of equity | 8.5% - 11.5% | 10% |
| Tax rate | 22.3% - 22.9% | 22.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.2% - 7.7% | 6.9% |
| Category | Low | High |
| Long-term bond rate | 4.8% | 5.3% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.6 | 0.79 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.5% | 11.5% |
| Tax rate | 22.3% | 22.9% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.2% | 7.7% |
| Selected WACC | 6.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| POLY.TA | Polygon Real Estate Ltd | 0.85 | 0.55 | 0.33 |
| 1124.HK | Coastal Greenland Ltd | 4.77 | 1.58 | 0.34 |
| 1218.HK | Easyknit International Holdings Ltd | 24.08 | -0.05 | 0 |
| 514215.BO | Binny Ltd | 0 | 1.33 | 1.33 |
| DCMA.TA | Decama Capital Ltd | 0.12 | 0.5 | 0.46 |
| GAMA.JK | Aksara Global Development Tbk PT | 0.7 | 0.25 | 0.16 |
| HNMR.TA | Hanan Mor Group Holdings Ltd | 18.08 | 1 | 0.07 |
| KWG.BK | King Wai Group Thailand PCL | 1.75 | 1.36 | 0.58 |
| MAGNA.KL | Magna Prima Bhd | 0 | 0.03 | 0.03 |
| NRC.VN | Danh Khoi Group JSC | 0.78 | 0.44 | 0.27 |
| NZIA.JK | Nusantara Almazia Tbk PT | 0.48 | 1.17 | 0.85 |
| Low | High | |
| Unlevered beta | 0.27 | 0.34 |
| Relevered beta | 0.4 | 0.69 |
| Adjusted relevered beta | 0.6 | 0.79 |
POLY.TA'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 POLY.TA:
cost_of_equity (10.00%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * 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.