WOD.WA WACC - Weighted Average Cost of Capital

The WACC of Wodkan Przedsiebiorstwo Wodociagow i Kanalizacji SA (WOD.WA) is 8.8%.

The Cost of Equity of Wodkan Przedsiebiorstwo Wodociagow i Kanalizacji SA (WOD.WA) is 10.50%.

The Cost of Debt of Wodkan Przedsiebiorstwo Wodociagow i Kanalizacji SA (WOD.WA) is 5.55%.

	Range	Selected
Cost of equity	9.30% - 11.70%	10.50%
Tax rate	19.00% - 19.00%	19.00%
Cost of debt	4.40% - 6.70%	5.55%
WACC	7.7% - 10.0%	8.8%

WACC

WOD.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.6	0.71

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.30%	11.70%

Tax rate	19.00%	19.00%
Debt/Equity ratio	0.38	0.38
Cost of debt	4.40%	6.70%

After-tax WACC	7.7%	10.0%


Selected WACC	8.8%

WOD.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 WOD.WA:

cost_of_equity (10.50%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.6) + 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.