SAF1R.RG WACC - Weighted Average Cost of Capital
The WACC of SAF Tehnika AS (SAF1R.RG) is 6.3%.
| Range | Selected | |
| Cost of equity | 5.2% - 7.7% | 6.45% |
| Tax rate | 5.3% - 7.2% | 6.25% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.2% - 7.4% | 6.3% |
| Category | Low | High |
| Long-term bond rate | 1.0% | 1.5% |
| Equity market risk premium | 6.9% | 7.8% |
| Adjusted beta | 0.61 | 0.72 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.2% | 7.7% |
| Tax rate | 5.3% | 7.2% |
| Debt/Equity ratio | 0.1 | 0.1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.2% | 7.4% |
| Selected WACC | 6.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SAF1R.RG | SAF Tehnika AS | 0.1 | 0.05 | 0.05 |
| ALMUN.PA | Munic SA | 1.31 | 0.25 | 0.11 |
| ALNN6.PA | Enensys Technologies SA | 1.17 | 0.33 | 0.16 |
| CEK.DE | CeoTronics Audio Video Data Communication AG | 0.16 | 1.42 | 1.24 |
| FTC.L | Filtronic PLC | 0.01 | 1.4 | 1.39 |
| OPTI.BR | Crescent NV | 0.29 | 0.85 | 0.67 |
| SRT.L | SRT Marine Systems PLC | 0.1 | 0.5 | 0.45 |
| TAGM B.ST | TagMaster AB | 0.7 | 0.53 | 0.32 |
| TST.L | Touchstar PLC | 0.03 | 0.43 | 0.42 |
| WAYS.ST | Waystream Holding AB (publ) | 0.05 | 0.95 | 0.91 |
| Low | High | |
| Unlevered beta | 0.38 | 0.54 |
| Relevered beta | 0.42 | 0.58 |
| Adjusted relevered beta | 0.61 | 0.72 |
SAF1R.RG'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 SAF1R.RG:
cost_of_equity (6.45%) = risk_free_rate (1.25%) + equity_risk_premium (7.35%) * adjusted_beta (0.61) + 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.