SPL.WA WACC - Weighted Average Cost of Capital

The WACC of Santander Bank Polska SA (SPL.WA) is 11.3%.

The Cost of Equity of Santander Bank Polska SA (SPL.WA) is 13.80%.

The Cost of Debt of Santander Bank Polska SA (SPL.WA) is 5.00%.

	Range	Selected
Cost of equity	11.90% - 15.70%	13.80%
Tax rate	29.70% - 32.20%	30.95%
Cost of debt	5.00% - 5.00%	5.00%
WACC	9.8% - 12.7%	11.3%

WACC

SPL.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	1.25

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.90%	15.70%

Tax rate	29.70%	32.20%
Debt/Equity ratio	0.33	0.33
Cost of debt	5.00%	5.00%

After-tax WACC	9.8%	12.7%


Selected WACC	11.3%

SPL.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 SPL.WA:

cost_of_equity (13.80%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * 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.