SAR.AT WACC - Weighted Average Cost of Capital
The WACC of Gr Sarantis SA (SAR.AT) is 9.1%.
| Range | Selected | |
| Cost of equity | 7.6% - 11.7% | 9.65% |
| Tax rate | 15.2% - 17.5% | 16.35% |
| Cost of debt | 4.2% - 4.7% | 4.45% |
| WACC | 7.2% - 11.0% | 9.1% |
| Category | Low | High |
| Long-term bond rate | 3.3% | 3.8% |
| Equity market risk premium | 8.8% | 9.8% |
| Adjusted beta | 0.49 | 0.76 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.6% | 11.7% |
| Tax rate | 15.2% | 17.5% |
| Debt/Equity ratio | 0.1 | 0.1 |
| Cost of debt | 4.2% | 4.7% |
| After-tax WACC | 7.2% | 11.0% |
| Selected WACC | 9.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SAR.AT | Gr Sarantis SA | 0.1 | 0.63 | 0.58 |
| CRL.L | Creightons PLC | 0.15 | 0.68 | 0.6 |
| ECILC.IS | EIS Eczacibasi Ilac Sinai ve Finansal Yatirimlar Sanayi ve Ticaret AS | 0.03 | 0.63 | 0.61 |
| ENV.MI | Enervit SpA | 0.15 | 0.11 | 0.09 |
| GLC.WA | Global Cosmed SA | 0.21 | 0.28 | 0.24 |
| JBOG.PA | Jacques Bogart SA | 2.45 | 0.54 | 0.18 |
| LLQ.SW | Lalique Group SA | 0.25 | 0.89 | 0.74 |
| MSON B.ST | Midsona AB | 0.46 | 0.06 | 0.04 |
| SIS.L | Science in Sport PLC | 0.19 | 0.06 | 0.06 |
| W7L.L | Warpaint London PLC | 0.02 | 1.25 | 1.23 |
| Low | High | |
| Unlevered beta | 0.22 | 0.59 |
| Relevered beta | 0.24 | 0.64 |
| Adjusted relevered beta | 0.49 | 0.76 |
SAR.AT'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 SAR.AT:
cost_of_equity (9.65%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * 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.