The WACC of Sano Brunos Enterprises Ltd (SANO1.TA) is 11.4%.
Range | Selected | |
Cost of equity | 10.2% - 12.7% | 11.45% |
Tax rate | 22.2% - 22.3% | 22.25% |
Cost of debt | 4.0% - 5.4% | 4.7% |
WACC | 10.1% - 12.6% | 11.4% |
Category | Low | High |
Long-term bond rate | 4.8% | 5.3% |
Equity market risk premium | 6.1% | 7.1% |
Adjusted beta | 0.87 | 0.96 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 10.2% | 12.7% |
Tax rate | 22.2% | 22.3% |
Debt/Equity ratio | 0.01 | 0.01 |
Cost of debt | 4.0% | 5.4% |
After-tax WACC | 10.1% | 12.6% |
Selected WACC | 11.4% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
SANO1.TA | Sano Brunos Enterprises Ltd | 0.01 | 0.78 | 0.78 |
000737.SZ | Nafine Chemical Industry Group Co Ltd | 0.4 | 1.27 | 0.96 |
004540.KS | Kleannara Co Ltd | 3.93 | 0.59 | 0.14 |
065950.KQ | Welcron Co Ltd | 2.66 | 0.35 | 0.11 |
2222.HK | NVC International Holdings Ltd | 0.02 | 0.94 | 0.93 |
4951.T | ST Corp | 0.02 | 0.35 | 0.34 |
600651.SS | Shanghai Feilo Acoustics Co Ltd | 0.09 | 1.46 | 1.36 |
603630.SS | Lafang China Co Ltd | 0 | 0.99 | 0.99 |
DGC.VN | Ducgiang Chemicals Group JSC | 0.03 | 1.42 | 1.39 |
JYOTHYLAB.NS | Jyothy Labs Ltd | 0 | 0.88 | 0.88 |
UCID.JK | Uni-charm Indonesia PT | 0.11 | 0.75 | 0.69 |
Low | High | |
Unlevered beta | 0.78 | 0.93 |
Relevered beta | 0.81 | 0.94 |
Adjusted relevered beta | 0.87 | 0.96 |
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 (11.45%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.87) + 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.