SCT.LS WACC - Weighted Average Cost of Capital
The WACC of Toyota Caetano Portugal SA (SCT.LS) is 7.8%.
| Range | Selected | |
| Cost of equity | 7.2% - 11.4% | 9.3% |
| Tax rate | 29.7% - 31.5% | 30.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.2% - 9.3% | 7.8% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.9% | 7.8% |
| Adjusted beta | 0.63 | 0.96 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.2% | 11.4% |
| Tax rate | 29.7% | 31.5% |
| Debt/Equity ratio | 0.36 | 0.36 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.2% | 9.3% |
| Selected WACC | 7.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SCT.LS | Toyota Caetano Portugal SA | 0.36 | 0.23 | 0.19 |
| AML.L | Aston Martin Lagonda Global Holdings PLC | 1.76 | 0.74 | 0.33 |
| ARX.WA | Arrinera SA | 0.46 | 1.01 | 0.77 |
| H9W.DE | HWA AG | 0.69 | 1.6 | 1.09 |
| INZILE.ST | Inzile AB (publ) | 0.08 | 0.94 | 0.89 |
| KABE B.ST | KABE Group AB | 0.03 | 0.02 | 0.02 |
| KARSN.IS | Karsan Otomotiv Sanayii ve Ticaret AS | 0.47 | 1.55 | 1.17 |
| KTA.DE | Knaus Tabbert AG | 2.56 | 1.04 | 0.38 |
| PAH3.DE | Porsche Automobil Holding SE | 0.75 | 1.01 | 0.67 |
| PINF.MI | Pininfarina SpA | 0.27 | 0.2 | 0.17 |
| Low | High | |
| Unlevered beta | 0.36 | 0.71 |
| Relevered beta | 0.45 | 0.94 |
| Adjusted relevered beta | 0.63 | 0.96 |
SCT.LS'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 SCT.LS:
cost_of_equity (9.30%) = risk_free_rate (3.15%) + equity_risk_premium (7.35%) * adjusted_beta (0.63) + 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.