THD.WA
Dust SA
Price:  
1.40 
PLN
Volume:  
10.00
Poland | Entertainment
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THD.WA WACC - Weighted Average Cost of Capital

The WACC of Dust SA (THD.WA) is 8.1%.

The Cost of Equity of Dust SA (THD.WA) is 8.30%.
The Cost of Debt of Dust SA (THD.WA) is 5.00%.

Range Selected
Cost of equity 7.30% - 9.30% 8.30%
Tax rate 19.00% - 19.00% 19.00%
Cost of debt 5.00% - 5.00% 5.00%
WACC 7.1% - 9.0% 8.1%
WACC

THD.WA WACC calculation

Category Low High
Long-term bond rate 5.5% 6.0%
Equity market risk premium 6.3% 7.3%
Adjusted beta 0.29 0.38
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.30% 9.30%
Tax rate 19.00% 19.00%
Debt/Equity ratio 0.05 0.05
Cost of debt 5.00% 5.00%
After-tax WACC 7.1% 9.0%
Selected WACC 8.1%

THD.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 THD.WA:

cost_of_equity (8.30%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.29) + 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.