WWL.WA WACC - Weighted Average Cost of Capital
The WACC of Wawel SA (WWL.WA) is 10.6%.
| Range | Selected | |
| Cost of equity | 9.2% - 12.1% | 10.65% |
| Tax rate | 19.7% - 19.9% | 19.8% |
| Cost of debt | 5.2% - 6.1% | 5.65% |
| WACC | 9.2% - 12.1% | 10.6% |
| Category | Low | High |
| Long-term bond rate | 5.5% | 6.0% |
| Equity market risk premium | 6.3% | 7.3% |
| Adjusted beta | 0.59 | 0.77 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.2% | 12.1% |
| Tax rate | 19.7% | 19.9% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 5.2% | 6.1% |
| After-tax WACC | 9.2% | 12.1% |
| Selected WACC | 10.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| WWL.WA | Wawel SA | 0.01 | -0.04 | -0.04 |
| ALGEM.PA | Eurogerm SA | 0.05 | 0.23 | 0.22 |
| DARDL.IS | Dardanel Onentas Gida Sanayi AS | 0.2 | 1.37 | 1.18 |
| GMI.SW | Groupe Minoteries SA | 0.05 | 0.19 | 0.18 |
| KRI.AT | Kri Kri Milk Industry SA | 0.01 | 0.49 | 0.49 |
| KYLO.AT | Loulis Mills SA | 0.96 | 0.87 | 0.49 |
| PETUN.IS | Pinar Entegre Et ve Un Sanayii AS | 0.13 | 1.17 | 1.06 |
| TATGD.IS | Tat Gida Sanayi AS | 0.26 | 1.06 | 0.88 |
| TUKAS.IS | Tukas Gida Sanayi ve Ticaret AS | 0.33 | 1.68 | 1.33 |
| VLS.MI | Valsoia SpA | 0.08 | 0.04 | 0.04 |
| Low | High | |
| Unlevered beta | 0.38 | 0.65 |
| Relevered beta | 0.39 | 0.66 |
| Adjusted relevered beta | 0.59 | 0.77 |
WWL.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 WWL.WA:
cost_of_equity (10.65%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.59) + 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.