SAE.TA WACC - Weighted Average Cost of Capital
The WACC of Shufersal Ltd (SAE.TA) is 6.6%.
| Range | Selected | |
| Cost of equity | 7.8% - 9.6% | 8.7% |
| Tax rate | 24.2% - 25.5% | 24.85% |
| Cost of debt | 4.0% - 5.5% | 4.75% |
| WACC | 5.9% - 7.4% | 6.6% |
| Category | Low | High |
| Long-term bond rate | 4.8% | 5.3% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.49 | 0.53 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.8% | 9.6% |
| Tax rate | 24.2% | 25.5% |
| Debt/Equity ratio | 0.7 | 0.7 |
| Cost of debt | 4.0% | 5.5% |
| After-tax WACC | 5.9% | 7.4% |
| Selected WACC | 6.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SAE.TA | Shufersal Ltd | 0.7 | 0.77 | 0.5 |
| 002251.SZ | Better Life Commercial Chain Share Co Ltd | 0.64 | 0.83 | 0.56 |
| 282330.KS | BGF Retail Co Ltd | 0.49 | 0.3 | 0.22 |
| 3222.T | United Super Markets Holdings Inc | 0.35 | 0.12 | 0.1 |
| 8194.T | Life Corp | 0.35 | 0.23 | 0.18 |
| 8276.T | Heiwado Co Ltd | 0.14 | 0.15 | 0.13 |
| 8279.T | Yaoko Co Ltd | 0.21 | 0.12 | 0.1 |
| 8287.T | Maxvalu Nishinihon Co Ltd | 0.43 | 0.47 | 0.36 |
| 9948.T | Arcs Co Ltd | 0.18 | 0.2 | 0.17 |
| 9956.T | Valor Holdings Co Ltd | 0.98 | 0.23 | 0.13 |
| AMRT.JK | Sumber Alfaria Trijaya Tbk PT | 0.02 | 1.08 | 1.07 |
| Low | High | |
| Unlevered beta | 0.17 | 0.22 |
| Relevered beta | 0.24 | 0.3 |
| Adjusted relevered beta | 0.49 | 0.53 |
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 (0.49) + 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.