SFG1T.TL WACC - Weighted Average Cost of Capital

The WACC of Silvano Fashion Group AS (SFG1T.TL) is 10.8%.

The Cost of Equity of Silvano Fashion Group AS (SFG1T.TL) is 11.40%.

The Cost of Debt of Silvano Fashion Group AS (SFG1T.TL) is 9.05%.

	Range	Selected
Cost of equity	9.90% - 12.90%	11.40%
Tax rate	19.70% - 21.90%	20.80%
Cost of debt	6.60% - 11.50%	9.05%
WACC	9.3% - 12.4%	10.8%

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	0.65	0.84

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.90%	12.90%

Tax rate	19.70%	21.90%
Debt/Equity ratio	0.16	0.16
Cost of debt	6.60%	11.50%

After-tax WACC	9.3%	12.4%


Selected WACC	10.8%

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 (11.40%) = risk_free_rate (6.15%) + equity_risk_premium (6.60%) * adjusted_beta (0.65) + 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.