SFG1T.TL WACC - Weighted Average Cost of Capital

The WACC of Silvano Fashion Group AS (SFG1T.TL) is 11.3%.

The Cost of Equity of Silvano Fashion Group AS (SFG1T.TL) is 12.05%.

The Cost of Debt of Silvano Fashion Group AS (SFG1T.TL) is 7.60%.

	Range	Selected
Cost of equity	10.60% - 13.50%	12.05%
Tax rate	22.50% - 26.20%	24.35%
Cost of debt	6.50% - 8.70%	7.60%
WACC	9.9% - 12.7%	11.3%

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	0.76	0.93

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.60%	13.50%

Tax rate	22.50%	26.20%
Debt/Equity ratio	0.13	0.13
Cost of debt	6.50%	8.70%

After-tax WACC	9.9%	12.7%


Selected WACC	11.3%

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 (12.05%) = risk_free_rate (6.15%) + equity_risk_premium (6.60%) * adjusted_beta (0.76) + 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.