SCC.TA WACC - Weighted Average Cost of Capital

The WACC of Space Communication Ltd (SCC.TA) is 7.7%.

The Cost of Equity of Space Communication Ltd (SCC.TA) is 56.55%.

The Cost of Debt of Space Communication Ltd (SCC.TA) is 5.00%.

	Range	Selected
Cost of equity	39.60% - 73.50%	56.55%
Tax rate	1.30% - 2.60%	1.95%
Cost of debt	5.00% - 5.00%	5.00%
WACC	6.8% - 8.6%	7.7%

WACC

SCC.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	5.6%	6.6%
Adjusted beta	6.17	10.21

Additional risk adjustments	0.0%	0.5%
Cost of equity	39.60%	73.50%

Tax rate	1.30%	2.60%
Debt/Equity ratio	17.32	17.32
Cost of debt	5.00%	5.00%

After-tax WACC	6.8%	8.6%


Selected WACC	7.7%

SCC.TA'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 SCC.TA:

cost_of_equity (56.55%) = risk_free_rate (5.05%) + equity_risk_premium (6.10%) * adjusted_beta (6.17) + 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.