SDV.AX WACC - Weighted Average Cost of Capital
The WACC of Scidev Ltd (SDV.AX) is 9.0%.
| Range | Selected | |
| Cost of equity | 8.1% - 10.9% | 9.5% |
| Tax rate | 30.0% - 30.0% | 30% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 7.6% - 10.4% | 9.0% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.79 | 0.96 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.1% | 10.9% |
| Tax rate | 30.0% | 30.0% |
| Debt/Equity ratio | 0.09 | 0.09 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 7.6% | 10.4% |
| Selected WACC | 9.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SDV.AX | Scidev Ltd | 0.09 | 0.99 | 0.93 |
| 032980.KQ | ByOn Co Ltd | 3.58 | -0.76 | -0.22 |
| ASIAPLY.KL | Asia Poly Holdings Bhd | 0.46 | 1.57 | 1.18 |
| CG1.AX | Carbonxt Group Ltd | 0.65 | 0.37 | 0.25 |
| CXL.AX | Calix Ltd | 0.05 | 2.08 | 2.02 |
| HRC.VN | Hoa Binh Rubber JSC | 0.21 | 0.66 | 0.57 |
| INFR.TA | Infimer Ltd | 0.02 | 1.73 | 1.71 |
| ORI.AX | Orica Ltd | 0.27 | 0.84 | 0.7 |
| RGTBHD.KL | Rgt Bhd | 0.61 | 1.2 | 0.84 |
| SES.AX | Secos Group Ltd | 0.08 | -0.53 | -0.5 |
| Low | High | |
| Unlevered beta | 0.65 | 0.88 |
| Relevered beta | 0.69 | 0.94 |
| Adjusted relevered beta | 0.79 | 0.96 |
SDV.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 SDV.AX:
cost_of_equity (9.50%) = risk_free_rate (4.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.79) + 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.