SDG.PA WACC - Weighted Average Cost of Capital
The WACC of Synergie SE (SDG.PA) is 9.0%.
| Range | Selected | |
| Cost of equity | 8.3% - 11.4% | 9.85% |
| Tax rate | 34.2% - 38.1% | 36.15% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 7.6% - 10.3% | 9.0% |
| Category | Low | High |
| Long-term bond rate | 3.0% | 3.5% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.91 | 1.09 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.3% | 11.4% |
| Tax rate | 34.2% | 38.1% |
| Debt/Equity ratio | 0.14 | 0.14 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 7.6% | 10.3% |
| Selected WACC | 9.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SDG.PA | Synergie SE | 0.14 | 0.27 | 0.25 |
| BRNL.AS | Brunel International NV | 0.22 | 1.18 | 1.03 |
| CEN.PA | Groupe Crit SA | 0.19 | 0.56 | 0.49 |
| HAS.L | Hays PLC | 0.21 | 1.32 | 1.16 |
| IPEL.L | Impellam Group PLC | 0.24 | 0.47 | 0.41 |
| PAGE.L | Pagegroup PLC | 0.16 | 1.46 | 1.33 |
| PRP.L | Prime People PLC | 0.36 | 1.88 | 1.53 |
| STAF.L | Staffline Group PLC | 0.2 | 0.45 | 0.4 |
| STEM.L | SThree PLC | 0.14 | 1.09 | 1 |
| TBI | TrueBlue Inc | 0.04 | 1.06 | 1.03 |
| Low | High | |
| Unlevered beta | 0.8 | 1.03 |
| Relevered beta | 0.87 | 1.13 |
| Adjusted relevered beta | 0.91 | 1.09 |
SDG.PA'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.PA:
cost_of_equity (9.85%) = risk_free_rate (3.25%) + equity_risk_premium (6.30%) * adjusted_beta (0.91) + 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.