SIMINN.IC WACC - Weighted Average Cost of Capital
The WACC of Siminn hf (SIMINN.IC) is 10.7%.
| Range | Selected | |
| Cost of equity | 10.9% - 12.8% | 11.85% |
| Tax rate | 19.8% - 20.7% | 20.25% |
| Cost of debt | 8.9% - 12.3% | 10.6% |
| WACC | 9.7% - 11.8% | 10.7% |
| Category | Low | High |
| Long-term bond rate | 7.1% | 7.6% |
| Equity market risk premium | 6.3% | 7.3% |
| Adjusted beta | 0.61 | 0.64 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.9% | 12.8% |
| Tax rate | 19.8% | 20.7% |
| Debt/Equity ratio | 0.5 | 0.5 |
| Cost of debt | 8.9% | 12.3% |
| After-tax WACC | 9.7% | 11.8% |
| Selected WACC | 10.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SIMINN.IC | Siminn hf | 0.5 | 0.43 | 0.31 |
| ADT.L | Adept Technology Group PLC | 0.81 | 1.5 | 0.91 |
| E4C.DE | Ecotel Communication AG | 0.15 | 0.31 | 0.27 |
| LLN.MC | Lleidanetworks Serveis Telematics SA | 0.45 | 0.74 | 0.54 |
| NET.WA | Netia SA | 0.27 | 0.2 | 0.17 |
| NEWS.AT | Newsphone Hellas SA | 0.17 | 0.48 | 0.42 |
| PHR.LS | Pharol SGPS SA | 0 | 0.12 | 0.12 |
| R22.WA | R22 SA | 0.33 | 0.43 | 0.34 |
| SYN.IC | Syn hf | 3.08 | 0.1 | 0.03 |
| TLS.WA | Telestrada SA | 1.06 | 0.33 | 0.18 |
| Low | High | |
| Unlevered beta | 0.24 | 0.32 |
| Relevered beta | 0.42 | 0.46 |
| Adjusted relevered beta | 0.61 | 0.64 |
SIMINN.IC'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 SIMINN.IC:
cost_of_equity (11.85%) = risk_free_rate (7.35%) + equity_risk_premium (6.80%) * adjusted_beta (0.61) + 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.