SPL.WA WACC - Weighted Average Cost of Capital
The WACC of Santander Bank Polska SA (SPL.WA) is 9.8%.
| Range | Selected | |
| Cost of equity | 9.8% - 13.4% | 11.6% |
| Tax rate | 29.7% - 32.2% | 30.95% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.4% - 11.2% | 9.8% |
| Category | Low | High |
| Long-term bond rate | 5.5% | 6.0% |
| Equity market risk premium | 6.3% | 7.3% |
| Adjusted beta | 0.68 | 0.94 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.8% | 13.4% |
| Tax rate | 29.7% | 32.2% |
| Debt/Equity ratio | 0.29 | 0.29 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.4% | 11.2% |
| Selected WACC | 9.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SPL.WA | Santander Bank Polska SA | 0.29 | 1.17 | 0.98 |
| BAMI.MI | Banco BPM SpA | 1.97 | 1.22 | 0.52 |
| BKT.MC | Bankinter SA | 3.5 | 1.08 | 0.32 |
| BPE.MI | Bper Banca SpA | 2.2 | 1.55 | 0.61 |
| ETE.AT | National Bank of Greece SA | 0.46 | 1.71 | 1.3 |
| ING.WA | ING Bank Slaski SA | 0.07 | 1.05 | 1 |
| JYSK.CO | Jyske Bank A/S | 11.28 | 0.35 | 0.04 |
| OBS.VI | Oberbank AG | 0.78 | 0.11 | 0.07 |
| PEO.WA | Bank Polska Kasa Opieki SA | 0.44 | 1.54 | 1.18 |
| TCS.L | TCS Group Holding PLC | 0.17 | -0.42 | -0.38 |
| Low | High | |
| Unlevered beta | 0.44 | 0.76 |
| Relevered beta | 0.52 | 0.91 |
| Adjusted relevered beta | 0.68 | 0.94 |
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 (11.60%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.68) + 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.