SANO1.TA WACC - Weighted Average Cost of Capital

The WACC of Sano Brunos Enterprises Ltd (SANO1.TA) is 9.7%.

The Cost of Equity of Sano Brunos Enterprises Ltd (SANO1.TA) is 9.75%.

The Cost of Debt of Sano Brunos Enterprises Ltd (SANO1.TA) is 4.85%.

	Range	Selected
Cost of equity	8.50% - 11.00%	9.75%
Tax rate	21.80% - 22.20%	22.00%
Cost of debt	4.30% - 5.40%	4.85%
WACC	8.4% - 10.9%	9.7%

WACC

SANO1.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.6	0.72

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.50%	11.00%

Tax rate	21.80%	22.20%
Debt/Equity ratio	0.01	0.01
Cost of debt	4.30%	5.40%

After-tax WACC	8.4%	10.9%


Selected WACC	9.7%

SANO1.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 SANO1.TA:

cost_of_equity (9.75%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.6) + 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.