S4E.WA WACC - Weighted Average Cost of Capital

The WACC of S4E SA (S4E.WA) is 11.7%.

The Cost of Equity of S4E SA (S4E.WA) is 11.70%.

The Cost of Debt of S4E SA (S4E.WA) is 12.80%.

	Range	Selected
Cost of equity	10.40% - 13.00%	11.70%
Tax rate	20.20% - 21.40%	20.80%
Cost of debt	6.10% - 19.50%	12.80%
WACC	10.3% - 13.1%	11.7%

WACC

S4E.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.77	0.89

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.40%	13.00%

Tax rate	20.20%	21.40%
Debt/Equity ratio	0.02	0.02
Cost of debt	6.10%	19.50%

After-tax WACC	10.3%	13.1%


Selected WACC	11.7%

S4E.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 S4E.WA:

cost_of_equity (11.70%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.77) + 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.