ZWC.WA WACC - Weighted Average Cost of Capital

The WACC of Grupa Zywiec SA (ZWC.WA) is 9.4%.

The Cost of Equity of Grupa Zywiec SA (ZWC.WA) is 10.60%.

The Cost of Debt of Grupa Zywiec SA (ZWC.WA) is 5.35%.

	Range	Selected
Cost of equity	9.50% - 11.70%	10.60%
Tax rate	19.40% - 19.70%	19.55%
Cost of debt	4.00% - 6.70%	5.35%
WACC	8.3% - 10.5%	9.4%

WACC

ZWC.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.64	0.71

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.50%	11.70%

Tax rate	19.40%	19.70%
Debt/Equity ratio	0.25	0.25
Cost of debt	4.00%	6.70%

After-tax WACC	8.3%	10.5%


Selected WACC	9.4%

ZWC.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 ZWC.WA:

cost_of_equity (10.60%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.64) + 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.