TLX.WA
Talex SA
Price:  
20.60 
PLN
Volume:  
53.00
Poland | IT Services
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TLX.WA WACC - Weighted Average Cost of Capital

The WACC of Talex SA (TLX.WA) is 9.0%.

The Cost of Equity of Talex SA (TLX.WA) is 9.30%.
The Cost of Debt of Talex SA (TLX.WA) is 6.35%.

Range Selected
Cost of equity 7.80% - 10.80% 9.30%
Tax rate 17.00% - 21.00% 19.00%
Cost of debt 5.70% - 7.00% 6.35%
WACC 7.6% - 10.5% 9.0%
WACC

TLX.WA WACC calculation

Category Low High
Long-term bond rate 5.5% 6.0%
Equity market risk premium 6.3% 7.3%
Adjusted beta 0.37 0.59
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.80% 10.80%
Tax rate 17.00% 21.00%
Debt/Equity ratio 0.07 0.07
Cost of debt 5.70% 7.00%
After-tax WACC 7.6% 10.5%
Selected WACC 9.0%

TLX.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 TLX.WA:

cost_of_equity (9.30%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.37) + 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.