WPL.WA
Wirtualna Polska Holding SA
Price:  
86.00 
PLN
Volume:  
13,180.00
Poland | Interactive Media & Services
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WPL.WA WACC - Weighted Average Cost of Capital

The WACC of Wirtualna Polska Holding SA (WPL.WA) is 9.4%.

The Cost of Equity of Wirtualna Polska Holding SA (WPL.WA) is 10.70%.
The Cost of Debt of Wirtualna Polska Holding SA (WPL.WA) is 6.50%.

Range Selected
Cost of equity 9.60% - 11.80% 10.70%
Tax rate 21.40% - 23.60% 22.50%
Cost of debt 6.30% - 6.70% 6.50%
WACC 8.5% - 10.3% 9.4%
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 0.72
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.60% 11.80%
Tax rate 21.40% 23.60%
Debt/Equity ratio 0.29 0.29
Cost of debt 6.30% 6.70%
After-tax WACC 8.5% 10.3%
Selected WACC 9.4%

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 (10.70%) = 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.