SAE.L WACC - Weighted Average Cost of Capital
The WACC of SIMEC Atlantis Energy Ltd (SAE.L) is 6.7%.
| Range | Selected | |
| Cost of equity | 9.1% - 15.3% | 12.2% |
| Tax rate | 1.6% - 1.9% | 1.75% |
| Cost of debt | 4.0% - 6.2% | 5.1% |
| WACC | 5.1% - 8.3% | 6.7% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.85 | 1.48 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.1% | 15.3% |
| Tax rate | 1.6% | 1.9% |
| Debt/Equity ratio | 3.26 | 3.26 |
| Cost of debt | 4.0% | 6.2% |
| After-tax WACC | 5.1% | 8.3% |
| Selected WACC | 6.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SAE.L | SIMEC Atlantis Energy Ltd | 3.26 | -1.08 | -0.26 |
| ALDBT.PA | DBT SA | 2.97 | 0.49 | 0.13 |
| ALELIO.ST | Alelion Energy Systems AB | 1.56 | 0.56 | 0.22 |
| ALENE.PA | Enertime SAS | 0.94 | 1.28 | 0.66 |
| ALVER.PA | Vergnet SA | 2.53 | -1.42 | -0.41 |
| CLIME B.ST | Climeon AB (publ) | 1.13 | 0.77 | 0.36 |
| HELIO.ST | Heliospectra AB (publ) | 0.23 | -0.41 | -0.33 |
| NBI.L | Northbridge Industrial Services PLC | 0.12 | 1.42 | 1.27 |
| PNE3.DE | PNE AG | 0.78 | 0.42 | 0.24 |
| STW.ST | SeaTwirl AB (publ) | 0 | 0.83 | 0.83 |
| Low | High | |
| Unlevered beta | 0.18 | 0.29 |
| Relevered beta | 0.78 | 1.72 |
| Adjusted relevered beta | 0.85 | 1.48 |
SAE.L'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 SAE.L:
cost_of_equity (12.20%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.85) + 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.