SEL.WA WACC - Weighted Average Cost of Capital

The WACC of Selena FM SA (SEL.WA) is 10.0%.

The Cost of Equity of Selena FM SA (SEL.WA) is 11.00%.

The Cost of Debt of Selena FM SA (SEL.WA) is 7.25%.

	Range	Selected
Cost of equity	9.50% - 12.50%	11.00%
Tax rate	16.10% - 17.40%	16.75%
Cost of debt	6.60% - 7.90%	7.25%
WACC	8.7% - 11.3%	10.0%

WACC

SEL.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.63	0.82

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.50%	12.50%

Tax rate	16.10%	17.40%
Debt/Equity ratio	0.26	0.26
Cost of debt	6.60%	7.90%

After-tax WACC	8.7%	11.3%


Selected WACC	10.0%

SEL.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 SEL.WA:

cost_of_equity (11.00%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.63) + 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.