SEK.WA WACC - Weighted Average Cost of Capital

The WACC of Seko SA (SEK.WA) is 10.3%.

The Cost of Equity of Seko SA (SEK.WA) is 12.10%.

The Cost of Debt of Seko SA (SEK.WA) is 6.20%.

	Range	Selected
Cost of equity	10.40% - 13.80%	12.10%
Tax rate	18.00% - 18.40%	18.20%
Cost of debt	6.20% - 6.20%	6.20%
WACC	9.0% - 11.5%	10.3%

WACC

SEK.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.77	1

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.40%	13.80%

Tax rate	18.00%	18.40%
Debt/Equity ratio	0.35	0.35
Cost of debt	6.20%	6.20%

After-tax WACC	9.0%	11.5%


Selected WACC	10.3%

SEK.WA'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 SEK.WA:

cost_of_equity (12.10%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.77) + 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.