ULM.WA WACC - Weighted Average Cost of Capital

The WACC of Ulma Construccion Polska SA (ULM.WA) is 9.3%.

The Cost of Equity of Ulma Construccion Polska SA (ULM.WA) is 9.30%.

The Cost of Debt of Ulma Construccion Polska SA (ULM.WA) is 13.55%.

	Range	Selected
Cost of equity	7.80% - 10.80%	9.30%
Tax rate	20.70% - 21.20%	20.95%
Cost of debt	6.10% - 21.00%	13.55%
WACC	7.7% - 11.0%	9.3%

WACC

ULM.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.36	0.58

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.80%	10.80%

Tax rate	20.70%	21.20%
Debt/Equity ratio	0.04	0.04
Cost of debt	6.10%	21.00%

After-tax WACC	7.7%	11.0%


Selected WACC	9.3%

ULM.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 ULM.WA:

cost_of_equity (9.30%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.36) + 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.