ZEP.WA
Zespol Elektrowni Patnow Adamow Konin SA
Price:  
18.88 
PLN
Volume:  
6,263.00
Poland | Electric Utilities
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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 10.80%.
The Cost of Debt of Zespol Elektrowni Patnow Adamow Konin SA (ZEP.WA) is 5.05%.

Range Selected
Cost of equity 9.10% - 12.50% 10.80%
Tax rate 22.40% - 28.40% 25.40%
Cost of debt 4.00% - 6.10% 5.05%
WACC 8.9% - 12.2% 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 0.81
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.10% 12.50%
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% 12.2%
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 (10.80%) = 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.