TAR.WA WACC - Weighted Average Cost of Capital

The WACC of Tarczynski SA (TAR.WA) is 8.9%.

The Cost of Equity of Tarczynski SA (TAR.WA) is 9.65%.

The Cost of Debt of Tarczynski SA (TAR.WA) is 8.20%.

	Range	Selected
Cost of equity	8.70% - 10.60%	9.65%
Tax rate	6.20% - 11.80%	9.00%
Cost of debt	7.80% - 8.60%	8.20%
WACC	8.2% - 9.6%	8.9%

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	0.5	0.56

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.70%	10.60%

Tax rate	6.20%	11.80%
Debt/Equity ratio	0.53	0.53
Cost of debt	7.80%	8.60%

After-tax WACC	8.2%	9.6%


Selected WACC	8.9%

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 (9.65%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.5) + 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.