SCL.NZ WACC - Weighted Average Cost of Capital
The WACC of Scales Corporation Ltd (SCL.NZ) is 7.8%.
| Range | Selected | |
| Cost of equity | 6.7% - 10.0% | 8.35% |
| Tax rate | 17.6% - 20.3% | 18.95% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 6.2% - 9.4% | 7.8% |
| Category | Low | High |
| Long-term bond rate | 4.3% | 4.8% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.46 | 0.76 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.7% | 10.0% |
| Tax rate | 17.6% | 20.3% |
| Debt/Equity ratio | 0.16 | 0.16 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 6.2% | 9.4% |
| Selected WACC | 7.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SCL.NZ | Scales Corporation Ltd | 0.16 | 0.9 | 0.8 |
| 1431.HK | YuanShengTai Dairy Farm Ltd | 0.79 | 0.7 | 0.43 |
| 1492.HK | China Zhongdi Dairy Holdings Co Ltd | 1.08 | 0.05 | 0.03 |
| 300511.SZ | Shanghai Xuerong Biotechnology Co Ltd | 0.57 | 1.65 | 1.12 |
| LSIP.JK | Perusahaan Perkebunan London Sumatra Indonesia Tbk PT | 0 | 1.01 | 1.01 |
| PGW.NZ | PGG Wrightson Ltd | 1.03 | 0.02 | 0.01 |
| SAN.NZ | Sanford Ltd | 0.44 | 0.17 | 0.12 |
| SEK.NZ | Seeka Ltd | 1.16 | 0.4 | 0.21 |
| SSMS.JK | Sawit Sumbermas Sarana Tbk PT | 0.57 | 0.1 | 0.07 |
| TSH.KL | TSH Resources Bhd | 0.17 | 0.98 | 0.85 |
| Low | High | |
| Unlevered beta | 0.17 | 0.57 |
| Relevered beta | 0.19 | 0.64 |
| Adjusted relevered beta | 0.46 | 0.76 |
SCL.NZ'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 SCL.NZ:
cost_of_equity (8.35%) = risk_free_rate (4.55%) + equity_risk_premium (5.60%) * adjusted_beta (0.46) + 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.