ZEP.WA WACC - Weighted Average Cost of Capital

The WACC of Zespol Elektrowni Patnow Adamow Konin SA (ZEP.WA) is 10.5%.

The Cost of Equity of Zespol Elektrowni Patnow Adamow Konin SA (ZEP.WA) is 10.75%.

The Cost of Debt of Zespol Elektrowni Patnow Adamow Konin SA (ZEP.WA) is 5.05%.

	Range	Selected
Cost of equity	9.10% - 12.40%	10.75%
Tax rate	22.40% - 28.40%	25.40%
Cost of debt	4.00% - 6.10%	5.05%
WACC	8.9% - 12.1%	10.5%

WACC

ZEP.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.57	0.8

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.10%	12.40%

Tax rate	22.40%	28.40%
Debt/Equity ratio	0.04	0.04
Cost of debt	4.00%	6.10%

After-tax WACC	8.9%	12.1%


Selected WACC	10.5%

ZEP.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 ZEP.WA:

cost_of_equity (10.75%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.57) + 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.