SGN.WA WACC - Weighted Average Cost of Capital

The WACC of Sygnity SA (SGN.WA) is 9.1%.

The Cost of Equity of Sygnity SA (SGN.WA) is 9.20%.

The Cost of Debt of Sygnity SA (SGN.WA) is 5.25%.

	Range	Selected
Cost of equity	8.40% - 10.00%	9.20%
Tax rate	12.00% - 14.50%	13.25%
Cost of debt	4.40% - 6.10%	5.25%
WACC	8.3% - 9.9%	9.1%

WACC

SGN.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.45	0.47

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.40%	10.00%

Tax rate	12.00%	14.50%
Debt/Equity ratio	0.02	0.02
Cost of debt	4.40%	6.10%

After-tax WACC	8.3%	9.9%


Selected WACC	9.1%

SGN.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 SGN.WA:

cost_of_equity (9.20%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.45) + 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.