WPL.WA WACC - Weighted Average Cost of Capital

The WACC of Wirtualna Polska Holding SA (WPL.WA) is 9.9%.

The Cost of Equity of Wirtualna Polska Holding SA (WPL.WA) is 11.20%.

The Cost of Debt of Wirtualna Polska Holding SA (WPL.WA) is 6.50%.

	Range	Selected
Cost of equity	9.50% - 12.90%	11.20%
Tax rate	21.40% - 23.60%	22.50%
Cost of debt	6.30% - 6.70%	6.50%
WACC	8.6% - 11.3%	9.9%

WACC

WPL.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.64	0.88

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.50%	12.90%

Tax rate	21.40%	23.60%
Debt/Equity ratio	0.27	0.27
Cost of debt	6.30%	6.70%

After-tax WACC	8.6%	11.3%


Selected WACC	9.9%

WPL.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 WPL.WA:

cost_of_equity (11.20%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.64) + 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.