SDG.AX WACC - Weighted Average Cost of Capital
The WACC of Sunland Group Ltd (SDG.AX) is 7.2%.
| Range | Selected | |
| Cost of equity | 9.0% - 12.2% | 10.6% |
| Tax rate | 28.7% - 30.2% | 29.45% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 5.9% - 8.5% | 7.2% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.97 | 1.18 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.0% | 12.2% |
| Tax rate | 28.7% | 30.2% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 5.9% | 8.5% |
| Selected WACC | 7.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SDG.AX | Sunland Group Ltd | 1.08 | -0.22 | -0.13 |
| 600159.SS | Beijing Dalong Weiye Real Estate Development Co Ltd | 0.06 | 1.15 | 1.1 |
| AVJ.AX | Avjennings Ltd | 0.61 | 0.6 | 0.42 |
| AXI.AX | Axiom Properties Ltd | 0.43 | 1.15 | 0.89 |
| CWP.AX | Cedar Woods Properties Ltd | 0.25 | 0.86 | 0.73 |
| DVN.AX | Devine Ltd | 0.99 | 0.75 | 0.44 |
| FRI.AX | Finbar Group Ltd | 2.07 | 0.33 | 0.14 |
| KOLTEPATIL.NS | Kolte-Patil Developers Ltd | 0.32 | 1.05 | 0.86 |
| LIC.AX | Lifestyle Communities Ltd | 0.39 | 0.96 | 0.76 |
| MPX.AX | Mustera Property Group Ltd | 0.93 | -0.28 | -0.17 |
| PPC.AX | Peet Ltd | 0.44 | 0.84 | 0.64 |
| Low | High | |
| Unlevered beta | 0.44 | 0.73 |
| Relevered beta | 0.96 | 1.27 |
| Adjusted relevered beta | 0.97 | 1.18 |
SDG.AX'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 SDG.AX:
cost_of_equity (10.60%) = risk_free_rate (4.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.97) + 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.