SIS.AX WACC - Weighted Average Cost of Capital
The WACC of Simble Solutions Ltd (SIS.AX) is 5.7%.
| Range | Selected | |
| Cost of equity | 5.0% - 6.8% | 5.9% |
| Tax rate | 30.0% - 30.0% | 30% |
| Cost of debt | 4.6% - 4.6% | 4.6% |
| WACC | 4.8% - 6.5% | 5.7% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | -0.11 | 0.05 |
| Additional risk adjustments | 1.5% | 2.0% |
| Cost of equity | 5.0% | 6.8% |
| Tax rate | 30.0% | 30.0% |
| Debt/Equity ratio | 0.09 | 0.09 |
| Cost of debt | 4.6% | 4.6% |
| After-tax WACC | 4.8% | 6.5% |
| Selected WACC | 5.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SIS.AX | Simble Solutions Ltd | 0.09 | -0.75 | -0.7 |
| AO1.AX | AssetOwl Ltd | 0.63 | -0.42 | -0.29 |
| CAG.AX | Cape Range Ltd | 0 | -0.87 | -0.87 |
| DSE.AX | Dropsuite Ltd | 0 | 0.05 | 0.05 |
| ICE.AX | Icetana Ltd | 0.01 | -0.46 | -0.45 |
| JXT.AX | Jaxsta Ltd | 0.08 | 0.51 | 0.48 |
| NOR.AX | Norwood Systems Ltd | 0.07 | -0.77 | -0.73 |
| OLL.AX | Openlearning Ltd | 0.33 | -0.69 | -0.56 |
| TYM.AX | TYMLEZ Group Ltd | 0.1 | -1.73 | -1.62 |
| XPE.AX | XPED Ltd | 0.03 | 0.07 | 0.07 |
| Low | High | |
| Unlevered beta | -0.62 | -0.39 |
| Relevered beta | -0.66 | -0.42 |
| Adjusted relevered beta | -0.11 | 0.05 |
SIS.AX'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 SIS.AX:
cost_of_equity (5.90%) = risk_free_rate (4.25%) + equity_risk_premium (5.60%) * adjusted_beta (-0.11) + risk_adjustments (1.75%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.