SIS.L
Science in Sport PLC
Price:  
33.00 
GBP
Volume:  
58,086.00
United Kingdom | Personal Products
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SIS.L WACC - Weighted Average Cost of Capital

The WACC of Science in Sport PLC (SIS.L) is 6.9%.

The Cost of Equity of Science in Sport PLC (SIS.L) is 6.95%.
The Cost of Debt of Science in Sport PLC (SIS.L) is 7.00%.

Range Selected
Cost of equity 6.20% - 7.70% 6.95%
Tax rate 3.70% - 6.80% 5.25%
Cost of debt 7.00% - 7.00% 7.00%
WACC 6.3% - 7.5% 6.9%
WACC

SIS.L WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.37 0.39
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.20% 7.70%
Tax rate 3.70% 6.80%
Debt/Equity ratio 0.19 0.19
Cost of debt 7.00% 7.00%
After-tax WACC 6.3% 7.5%
Selected WACC 6.9%

SIS.L'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.L:

cost_of_equity (6.95%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.37) + 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.