POZ.WA WACC - Weighted Average Cost of Capital

The WACC of Pozbud T&R SA (POZ.WA) is 10.4%.

The Cost of Equity of Pozbud T&R SA (POZ.WA) is 14.25%.

The Cost of Debt of Pozbud T&R SA (POZ.WA) is 5.95%.

	Range	Selected
Cost of equity	12.80% - 15.70%	14.25%
Tax rate	18.20% - 22.20%	20.20%
Cost of debt	4.00% - 7.90%	5.95%
WACC	8.9% - 11.8%	10.4%

WACC

POZ.WA WACC calculation

Category	Low	High

Long-term bond rate	7.2%	7.7%
Equity market risk premium	5.6%	6.6%
Adjusted beta	1	1.13

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.80%	15.70%

Tax rate	18.20%	22.20%
Debt/Equity ratio	0.68	0.68
Cost of debt	4.00%	7.90%

After-tax WACC	8.9%	11.8%


Selected WACC	10.4%

POZ.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 POZ.WA:

cost_of_equity (14.25%) = risk_free_rate (7.45%) + equity_risk_premium (6.10%) * adjusted_beta (1) + 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.