SEI.V WACC - Weighted Average Cost of Capital

The WACC of Sintana Energy Inc (SEI.V) is 7.0%.

The Cost of Equity of Sintana Energy Inc (SEI.V) is 10.25%.

The Cost of Debt of Sintana Energy Inc (SEI.V) is 5.00%.

	Range	Selected
Cost of equity	8.10% - 12.40%	10.25%
Tax rate	26.20% - 27.00%	26.60%
Cost of debt	5.00% - 5.00%	5.00%
WACC	5.9% - 8.0%	7.0%

WACC

SEI.V WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.84	1.24

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.10%	12.40%

Tax rate	26.20%	27.00%
Debt/Equity ratio	1	1
Cost of debt	5.00%	5.00%

After-tax WACC	5.9%	8.0%


Selected WACC	7.0%

SEI.V'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 SEI.V:

cost_of_equity (10.25%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.84) + 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.