TAR.WA WACC - Weighted Average Cost of Capital

The WACC of Tarczynski SA (TAR.WA) is 8.5%.

The Cost of Equity of Tarczynski SA (TAR.WA) is 9.70%.

The Cost of Debt of Tarczynski SA (TAR.WA) is 6.70%.

	Range	Selected
Cost of equity	8.80% - 10.60%	9.70%
Tax rate	14.00% - 18.70%	16.35%
Cost of debt	6.40% - 7.00%	6.70%
WACC	7.9% - 9.2%	8.5%

WACC

TAR.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.52	0.55

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.80%	10.60%

Tax rate	14.00%	18.70%
Debt/Equity ratio	0.39	0.39
Cost of debt	6.40%	7.00%

After-tax WACC	7.9%	9.2%


Selected WACC	8.5%

TAR.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 TAR.WA:

cost_of_equity (9.70%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.52) + 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.