SBM.V WACC - Weighted Average Cost of Capital
The WACC of Sirona Biochem Corp (SBM.V) is 8.5%.
| Range | Selected | |
| Cost of equity | 7.5% - 10.5% | 9% |
| Tax rate | 0.2% - 0.2% | 0.2% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.2% - 9.8% | 8.5% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.71 | 0.92 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.5% | 10.5% |
| Tax rate | 0.2% | 0.2% |
| Debt/Equity ratio | 0.14 | 0.14 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.2% | 9.8% |
| Selected WACC | 8.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SBM.V | Sirona Biochem Corp | 0.14 | 1.61 | 1.41 |
| APM | Aptorum Group Ltd | 0.49 | 1.51 | 1.01 |
| ARMP | Armata Pharmaceuticals Inc | 1.38 | 0.39 | 0.16 |
| AZRX | AzurRx BioPharma Inc | 0.02 | 1.58 | 1.56 |
| BIOC | Biocept Inc | 2.11 | 1.23 | 0.39 |
| EDT.TO | Spectral Medical Inc | 0.06 | 0.61 | 0.58 |
| GALT | Galectin Therapeutics Inc | 1.31 | 1.43 | 0.62 |
| MYMX | Mymetics Corp | 1814646.5 | 0.57 | 0 |
| SNGX | Soligenix Inc | 0.24 | 1.27 | 1.03 |
| YECO | Yulong Eco-Materials Ltd | 16.63 | -0.34 | -0.02 |
| Low | High | |
| Unlevered beta | 0.5 | 0.78 |
| Relevered beta | 0.57 | 0.88 |
| Adjusted relevered beta | 0.71 | 0.92 |
SBM.V'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 SBM.V:
cost_of_equity (9.00%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.71) + 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.