SFS.WA WACC - Weighted Average Cost of Capital

The WACC of Sfinks Polska SA (SFS.WA) is 8.1%.

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

The Cost of Debt of Sfinks Polska SA (SFS.WA) is 9.30%.

	Range	Selected
Cost of equity	9.40% - 15.10%	12.25%
Tax rate	14.30% - 18.10%	16.20%
Cost of debt	4.60% - 14.00%	9.30%
WACC	4.5% - 11.8%	8.1%

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	0.61	1.17

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.40%	15.10%

Tax rate	14.30%	18.10%
Debt/Equity ratio	9.22	9.22
Cost of debt	4.60%	14.00%

After-tax WACC	4.5%	11.8%


Selected WACC	8.1%

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 (0.61) + 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.