SAE.TA WACC - Weighted Average Cost of Capital

The WACC of Shufersal Ltd (SAE.TA) is 6.7%.

The Cost of Equity of Shufersal Ltd (SAE.TA) is 8.70%.

The Cost of Debt of Shufersal Ltd (SAE.TA) is 4.75%.

	Range	Selected
Cost of equity	7.60% - 9.80%	8.70%
Tax rate	24.20% - 25.50%	24.85%
Cost of debt	4.00% - 5.50%	4.75%
WACC	5.9% - 7.6%	6.7%

WACC

SAE.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.45	0.55

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.60%	9.80%

Tax rate	24.20%	25.50%
Debt/Equity ratio	0.62	0.62
Cost of debt	4.00%	5.50%

After-tax WACC	5.9%	7.6%


Selected WACC	6.7%

SAE.TA'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.TA:

cost_of_equity (8.70%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.45) + 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.