The WACC of Safe-T Group Ltd (SFET.TA) is 8.7%.
| Range | Selected | |
| Cost of equity | 7.60% - 10.20% | 8.90% |
| Tax rate | 0.10% - 1.30% | 0.70% |
| Cost of debt | 5.00% - 5.00% | 5.00% |
| WACC | 7.5% - 10.0% | 8.7% |
| Category | Low | High |
| Long-term bond rate | 3.0% | 3.5% |
| Equity market risk premium | 5.4% | 6.4% |
| Adjusted beta | 0.85 | 0.96 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.60% | 10.20% |
| Tax rate | 0.10% | 1.30% |
| Debt/Equity ratio | 0.04 | 0.04 |
| Cost of debt | 5.00% | 5.00% |
| After-tax WACC | 7.5% | 10.0% |
| Selected WACC | 8.7% | |
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 SFET.TA:
cost_of_equity (8.90%) = risk_free_rate (3.25%) + equity_risk_premium (5.90%) * adjusted_beta (0.85) + 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.