SIDMA.AT WACC - Weighted Average Cost of Capital

The WACC of SidMa Steel Products SA (SIDMA.AT) is 12.5%.

The Cost of Equity of SidMa Steel Products SA (SIDMA.AT) is 11.15%.

The Cost of Debt of SidMa Steel Products SA (SIDMA.AT) is 14.55%.

	Range	Selected
Cost of equity	9.50% - 12.80%	11.15%
Tax rate	7.60% - 13.30%	10.45%
Cost of debt	5.80% - 23.30%	14.55%
WACC	6.2% - 18.8%	12.5%

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	0.71	0.87

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.50%	12.80%

Tax rate	7.60%	13.30%
Debt/Equity ratio	4.17	4.17
Cost of debt	5.80%	23.30%

After-tax WACC	6.2%	18.8%


Selected WACC	12.5%

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 (11.15%) = risk_free_rate (3.55%) + equity_risk_premium (9.30%) * adjusted_beta (0.71) + 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.