SFS.WA WACC - Weighted Average Cost of Capital

The WACC of Sfinks Polska SA (SFS.WA) is 11.9%.

The Cost of Equity of Sfinks Polska SA (SFS.WA) is 12.25%.

The Cost of Debt of Sfinks Polska SA (SFS.WA) is 13.65%.

	Range	Selected
Cost of equity	9.50% - 15.00%	12.25%
Tax rate	11.90% - 13.80%	12.85%
Cost of debt	4.80% - 22.50%	13.65%
WACC	4.7% - 19.0%	11.9%

WACC

SFS.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.63	1.15

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.50%	15.00%

Tax rate	11.90%	13.80%
Debt/Equity ratio	9.51	9.51
Cost of debt	4.80%	22.50%

After-tax WACC	4.7%	19.0%


Selected WACC	11.9%

SFS.WA'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 SFS.WA:

cost_of_equity (12.25%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.63) + 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.