SEG.AX WACC - Weighted Average Cost of Capital
The WACC of Sports Entertainment Group Ltd (SEG.AX) is 5.9%.
| Range | Selected | |
| Cost of equity | 6.5% - 8.6% | 7.55% |
| Tax rate | 29.5% - 40.6% | 35.05% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 5.1% - 6.8% | 5.9% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.49 | 0.59 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.5% | 8.6% |
| Tax rate | 29.5% | 40.6% |
| Debt/Equity ratio | 0.65 | 0.65 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 5.1% | 6.8% |
| Selected WACC | 5.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SEG.AX | Sports Entertainment Group Ltd | 0.65 | -0.55 | -0.38 |
| 039340.KQ | Korea Business News Co Ltd | 0.11 | -0.12 | -0.11 |
| HT1.AX | HT&E Ltd | 0.44 | 1.42 | 1.1 |
| MARI.JK | Mahaka Radio Integra Tbk PT | 1.38 | 0.37 | 0.19 |
| NDTV.NS | New Delhi Television Ltd | 0.14 | 0.98 | 0.9 |
| NEC.AX | Nine Entertainment Co Holdings Ltd | 0.44 | 0.56 | 0.44 |
| NEXTMEDIA.NS | Next Mediaworks Ltd | 4.47 | 0.5 | 0.13 |
| RAJTV.NS | Raj Television Network Ltd | 0.09 | -0.38 | -0.36 |
| SWM.AX | Seven West Media Ltd | 2.09 | 0.58 | 0.25 |
| SXL.AX | Southern Cross Media Group Ltd | 1.38 | 0.57 | 0.3 |
| Low | High | |
| Unlevered beta | 0.17 | 0.27 |
| Relevered beta | 0.24 | 0.39 |
| Adjusted relevered beta | 0.49 | 0.59 |
SEG.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 SEG.AX:
cost_of_equity (7.55%) = risk_free_rate (4.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.49) + 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.