SIFG.AS WACC - Weighted Average Cost of Capital

The WACC of Sif Holding NV (SIFG.AS) is 8.1%.

The Cost of Equity of Sif Holding NV (SIFG.AS) is 8.85%.

The Cost of Debt of Sif Holding NV (SIFG.AS) is 9.15%.

	Range	Selected
Cost of equity	6.50% - 11.20%	8.85%
Tax rate	19.90% - 23.20%	21.55%
Cost of debt	4.00% - 14.30%	9.15%
WACC	5.0% - 11.1%	8.1%

WACC

SIFG.AS WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.78	1.25

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.50%	11.20%

Tax rate	19.90%	23.20%
Debt/Equity ratio	0.85	0.85
Cost of debt	4.00%	14.30%

After-tax WACC	5.0%	11.1%


Selected WACC	8.1%

SIFG.AS'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 SIFG.AS:

cost_of_equity (8.85%) = risk_free_rate (2.85%) + equity_risk_premium (5.60%) * adjusted_beta (0.78) + 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.