RPC.WA WACC - Weighted Average Cost of Capital

The WACC of Zaklady Magnezytowe Ropczyce SA (RPC.WA) is 8.7%.

The Cost of Equity of Zaklady Magnezytowe Ropczyce SA (RPC.WA) is 10.35%.

The Cost of Debt of Zaklady Magnezytowe Ropczyce SA (RPC.WA) is 8.05%.

	Range	Selected
Cost of equity	9.20% - 11.50%	10.35%
Tax rate	21.50% - 22.00%	21.75%
Cost of debt	7.20% - 8.90%	8.05%
WACC	7.8% - 9.6%	8.7%

WACC

RPC.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.59	0.68

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.20%	11.50%

Tax rate	21.50%	22.00%
Debt/Equity ratio	0.68	0.68
Cost of debt	7.20%	8.90%

After-tax WACC	7.8%	9.6%


Selected WACC	8.7%

RPC.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 RPC.WA:

cost_of_equity (10.35%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.59) + 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.