ZRE.WA WACC - Weighted Average Cost of Capital

The WACC of Zaklad Budowy Maszyn Zremb Chojnice SA (ZRE.WA) is 9.8%.

The Cost of Equity of Zaklad Budowy Maszyn Zremb Chojnice SA (ZRE.WA) is 10.10%.

The Cost of Debt of Zaklad Budowy Maszyn Zremb Chojnice SA (ZRE.WA) is 7.10%.

	Range	Selected
Cost of equity	8.50% - 11.70%	10.10%
Tax rate	23.80% - 30.80%	27.30%
Cost of debt	6.40% - 7.80%	7.10%
WACC	8.3% - 11.4%	9.8%

WACC

ZRE.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.47	0.71

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.50%	11.70%

Tax rate	23.80%	30.80%
Debt/Equity ratio	0.06	0.06
Cost of debt	6.40%	7.80%

After-tax WACC	8.3%	11.4%


Selected WACC	9.8%

ZRE.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 ZRE.WA:

cost_of_equity (10.10%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.47) + 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.