TRN.WA WACC - Weighted Average Cost of Capital

The WACC of Trans Polonia SA (TRN.WA) is 10.1%.

The Cost of Equity of Trans Polonia SA (TRN.WA) is 9.50%.

The Cost of Debt of Trans Polonia SA (TRN.WA) is 13.45%.

	Range	Selected
Cost of equity	7.90% - 11.10%	9.50%
Tax rate	19.00% - 19.00%	19.00%
Cost of debt	4.40% - 22.50%	13.45%
WACC	6.1% - 14.0%	10.1%

WACC

TRN.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.38	0.63

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.90%	11.10%

Tax rate	19.00%	19.00%
Debt/Equity ratio	0.69	0.69
Cost of debt	4.40%	22.50%

After-tax WACC	6.1%	14.0%


Selected WACC	10.1%

TRN.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 TRN.WA:

cost_of_equity (9.50%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.38) + 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.