SFG1T.TL WACC - Weighted Average Cost of Capital

The WACC of Silvano Fashion Group AS (SFG1T.TL) is 11.8%.

The Cost of Equity of Silvano Fashion Group AS (SFG1T.TL) is 12.50%.

The Cost of Debt of Silvano Fashion Group AS (SFG1T.TL) is 8.75%.

	Range	Selected
Cost of equity	11.10% - 13.90%	12.50%
Tax rate	19.70% - 21.90%	20.80%
Cost of debt	6.60% - 10.90%	8.75%
WACC	10.4% - 13.2%	11.8%

WACC

SFG1T.TL WACC calculation

Category	Low	High

Long-term bond rate	5.9%	6.4%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.86	0.98

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.10%	13.90%

Tax rate	19.70%	21.90%
Debt/Equity ratio	0.14	0.14
Cost of debt	6.60%	10.90%

After-tax WACC	10.4%	13.2%


Selected WACC	11.8%

SFG1T.TL'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 SFG1T.TL:

cost_of_equity (12.50%) = risk_free_rate (6.15%) + equity_risk_premium (6.60%) * adjusted_beta (0.86) + 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.