SIS.AX
Simble Solutions Ltd
Price:  
0.00 
AUD
Volume:  
500,000.00
Australia | Software
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SIS.AX WACC - Weighted Average Cost of Capital

The WACC of Simble Solutions Ltd (SIS.AX) is 6.2%.

The Cost of Equity of Simble Solutions Ltd (SIS.AX) is 6.45%.
The Cost of Debt of Simble Solutions Ltd (SIS.AX) is 4.60%.

Range Selected
Cost of equity 5.40% - 7.50% 6.45%
Tax rate 30.00% - 30.00% 30.00%
Cost of debt 4.60% - 4.60% 4.60%
WACC 5.2% - 7.1% 6.2%
WACC

SIS.AX WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 5.1% 6.1%
Adjusted beta -0.02 0.15
Additional risk adjustments 1.5% 2.0%
Cost of equity 5.40% 7.50%
Tax rate 30.00% 30.00%
Debt/Equity ratio 0.09 0.09
Cost of debt 4.60% 4.60%
After-tax WACC 5.2% 7.1%
Selected WACC 6.2%

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 (6.45%) = risk_free_rate (4.25%) + equity_risk_premium (5.60%) * adjusted_beta (-0.02) + 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.