SBTX.L WACC - Weighted Average Cost of Capital
The WACC of SkinBioTherapeutics PLC (SBTX.L) is 7.3%.
| Range | Selected | |
| Cost of equity | 6.3% - 8.3% | 7.3% |
| Tax rate | 5.2% - 6.1% | 5.65% |
| Cost of debt | 7.0% - 7.0% | 7% |
| WACC | 6.3% - 8.3% | 7.3% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.38 | 0.47 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.3% | 8.3% |
| Tax rate | 5.2% | 6.1% |
| Debt/Equity ratio | 0.02 | 0.02 |
| Cost of debt | 7.0% | 7.0% |
| After-tax WACC | 6.3% | 8.3% |
| Selected WACC | 7.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SBTX.L | SkinBioTherapeutics PLC | 0.02 | 1.53 | 1.51 |
| BIE.MI | Bioera SpA | 12.98 | -0.02 | 0 |
| ENV.MI | Enervit SpA | 0.15 | 0.15 | 0.13 |
| HRP.WA | Harper Hygienics SA | 2.7 | 0.06 | 0.02 |
| MIR.WA | Miraculum SA | 0.32 | 0.49 | 0.38 |
| NATTO.OL | Nattopharma ASA | 0.02 | 1.22 | 1.19 |
| NICO.ST | Nicoccino Holding AB (publ) | 0.03 | -1.2 | -1.17 |
| PHR.WA | Pharmena SA | 0.24 | 0.4 | 0.32 |
| SIS.L | Science in Sport PLC | 0.16 | 0.12 | 0.11 |
| HMPQ | HempAmericana Inc | 0.56 | 0 | 0 |
| Low | High | |
| Unlevered beta | 0.07 | 0.21 |
| Relevered beta | 0.07 | 0.21 |
| Adjusted relevered beta | 0.38 | 0.47 |
SBTX.L'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 SBTX.L:
cost_of_equity (7.30%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.38) + 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.