SIS.L WACC - Weighted Average Cost of Capital
The WACC of Science in Sport PLC (SIS.L) is 7.1%.
| Range | Selected | |
| Cost of equity | 6.3% - 8.0% | 7.15% |
| Tax rate | 3.7% - 6.8% | 5.25% |
| Cost of debt | 7.0% - 7.0% | 7% |
| WACC | 6.4% - 7.8% | 7.1% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.39 | 0.44 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.3% | 8.0% |
| Tax rate | 3.7% | 6.8% |
| Debt/Equity ratio | 0.18 | 0.18 |
| Cost of debt | 7.0% | 7.0% |
| After-tax WACC | 6.4% | 7.8% |
| Selected WACC | 7.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SIS.L | Science in Sport PLC | 0.18 | 0.1 | 0.08 |
| BIE.MI | Bioera SpA | 12.98 | -0.02 | 0 |
| CRL.L | Creightons PLC | 0.16 | 0.72 | 0.63 |
| ENV.MI | Enervit SpA | 0.15 | 0.12 | 0.11 |
| GLC.WA | Global Cosmed SA | 0.21 | 0.28 | 0.24 |
| HRP.WA | Harper Hygienics SA | 3.7 | 0.31 | 0.07 |
| MSON B.ST | Midsona AB | 0.47 | 0.08 | 0.06 |
| NICO.ST | Nicoccino Holding AB (publ) | 0.04 | -0.92 | -0.89 |
| NNH.ST | New Nordic Healthbrands AB | 0.27 | 0.22 | 0.18 |
| W7L.L | Warpaint London PLC | 0.02 | 1.35 | 1.33 |
| Low | High | |
| Unlevered beta | 0.08 | 0.14 |
| Relevered beta | 0.09 | 0.16 |
| Adjusted relevered beta | 0.39 | 0.44 |
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 (7.15%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.39) + 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.