SIDMA.AT WACC - Weighted Average Cost of Capital

The WACC of SidMa Steel Products SA (SIDMA.AT) is 11.9%.

The Cost of Equity of SidMa Steel Products SA (SIDMA.AT) is 8.95%.

The Cost of Debt of SidMa Steel Products SA (SIDMA.AT) is 14.90%.

	Range	Selected
Cost of equity	7.70% - 10.20%	8.95%
Tax rate	11.30% - 15.60%	13.45%
Cost of debt	6.50% - 23.30%	14.90%
WACC	6.2% - 17.7%	11.9%

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	0.5	0.61

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.70%	10.20%

Tax rate	11.30%	15.60%
Debt/Equity ratio	3.71	3.71
Cost of debt	6.50%	23.30%

After-tax WACC	6.2%	17.7%


Selected WACC	11.9%

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 (8.95%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.5) + 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.