ZAP.WA
Grupa Azoty Zaklady Azotowe Pulawy SA
Price:  
54.40 
PLN
Volume:  
5,153.00
Poland | Chemicals
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ZAP.WA WACC - Weighted Average Cost of Capital

The WACC of Grupa Azoty Zaklady Azotowe Pulawy SA (ZAP.WA) is 9.0%.

The Cost of Equity of Grupa Azoty Zaklady Azotowe Pulawy SA (ZAP.WA) is 12.40%.
The Cost of Debt of Grupa Azoty Zaklady Azotowe Pulawy SA (ZAP.WA) is 6.95%.

Range Selected
Cost of equity 10.60% - 14.20% 12.40%
Tax rate 16.10% - 20.00% 18.05%
Cost of debt 6.90% - 7.00% 6.95%
WACC 8.2% - 9.9% 9.0%
WACC

ZAP.WA WACC calculation

Category Low High
Long-term bond rate 5.5% 6.0%
Equity market risk premium 6.3% 7.3%
Adjusted beta 0.8 1.05
Additional risk adjustments 0.0% 0.5%
Cost of equity 10.60% 14.20%
Tax rate 16.10% 20.00%
Debt/Equity ratio 1.02 1.02
Cost of debt 6.90% 7.00%
After-tax WACC 8.2% 9.9%
Selected WACC 9.0%

ZAP.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 ZAP.WA:

cost_of_equity (12.40%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.8) + 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.