SIDMA.AT WACC - Weighted Average Cost of Capital

The WACC of SidMa Steel Products SA (SIDMA.AT) is 8.1%.

The Cost of Equity of SidMa Steel Products SA (SIDMA.AT) is 8.65%.

The Cost of Debt of SidMa Steel Products SA (SIDMA.AT) is 9.55%.

	Range	Selected
Cost of equity	7.00% - 10.30%	8.65%
Tax rate	16.70% - 19.10%	17.90%
Cost of debt	7.30% - 11.80%	9.55%
WACC	6.4% - 9.8%	8.1%

WACC

SIDMA.AT WACC calculation

Category	Low	High

Long-term bond rate	3.3%	3.8%
Equity market risk premium	8.8%	9.8%
Adjusted beta	0.42	0.61

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.00%	10.30%

Tax rate	16.70%	19.10%
Debt/Equity ratio	2.1	2.1
Cost of debt	7.30%	11.80%

After-tax WACC	6.4%	9.8%


Selected WACC	8.1%

SIDMA.AT'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 SIDMA.AT:

cost_of_equity (8.65%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.42) + 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.