SBV.SG WACC - Weighted Average Cost of Capital
The WACC of Schwabenverlag AG (SBV.SG) is 8.9%.
| Range | Selected | |
| Cost of equity | 6.5% - 9.8% | 8.15% |
| Tax rate | 30.0% - 30.0% | 30% |
| Cost of debt | 4.0% - 38.5% | 21.25% |
| WACC | 6.1% - 11.8% | 8.9% |
| Category | Low | High |
| Long-term bond rate | 2.0% | 2.5% |
| Equity market risk premium | 4.7% | 5.7% |
| Adjusted beta | 0.95 | 1.18 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.5% | 9.8% |
| Tax rate | 30.0% | 30.0% |
| Debt/Equity ratio | 0.13 | 0.13 |
| Cost of debt | 4.0% | 38.5% |
| After-tax WACC | 6.1% | 11.8% |
| Selected WACC | 8.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SBV.SG | Schwabenverlag AG | 0.13 | 1.62 | 1.48 |
| CAU.L | Centaur Media PLC | 0.02 | 0.2 | 0.19 |
| DOBUR.IS | Dogan Burda Dergi Yayincilik ve Pazarlama AS | 0.01 | 1.4 | 1.38 |
| HURGZ.IS | Hurriyet Gazetecilik ve Matbaacilik AS | 0.02 | 1.18 | 1.16 |
| IHGZT.IS | Ihlas Gazetecilik AS | 0.04 | 0.93 | 0.91 |
| IHYAY.IS | Ihlas Yayin Holding AS | 0.17 | 1.3 | 1.16 |
| LIVAN.AT | Livanis Publications SA | 16.97 | -0.01 | 0 |
| MZA.WA | Muza SA | 0.07 | 0.27 | 0.26 |
| PGM.WA | PMPG Polskie Media SA | 0.07 | 0.23 | 0.22 |
| PTW.WA | Polskie Towarzystwo Wspierania Przedsiebiorczosci SA | 0.02 | 0.42 | 0.41 |
| Low | High | |
| Unlevered beta | 0.35 | 1.01 |
| Relevered beta | 0.93 | 1.27 |
| Adjusted relevered beta | 0.95 | 1.18 |
SBV.SG'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 SBV.SG:
cost_of_equity (8.15%) = risk_free_rate (2.25%) + equity_risk_premium (5.20%) * adjusted_beta (0.95) + 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.