SEMG.TA WACC - Weighted Average Cost of Capital

The WACC of Seach Medical Group Ltd (SEMG.TA) is 8.5%.

The Cost of Equity of Seach Medical Group Ltd (SEMG.TA) is 9.50%.

The Cost of Debt of Seach Medical Group Ltd (SEMG.TA) is 4.90%.

	Range	Selected
Cost of equity	8.10% - 10.90%	9.50%
Tax rate	13.30% - 15.70%	14.50%
Cost of debt	4.00% - 5.80%	4.90%
WACC	7.3% - 9.8%	8.5%

WACC

SEMG.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.54	0.71

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.10%	10.90%

Tax rate	13.30%	15.70%
Debt/Equity ratio	0.22	0.22
Cost of debt	4.00%	5.80%

After-tax WACC	7.3%	9.8%


Selected WACC	8.5%

SEMG.TA'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 SEMG.TA:

cost_of_equity (9.50%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.54) + 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.