SKN.WA WACC - Weighted Average Cost of Capital

The WACC of Sakana SA (SKN.WA) is 8.8%.

The Cost of Equity of Sakana SA (SKN.WA) is 8.80%.

The Cost of Debt of Sakana SA (SKN.WA) is 13.05%.

	Range	Selected
Cost of equity	7.80% - 9.80%	8.80%
Tax rate	15.30% - 23.00%	19.15%
Cost of debt	7.70% - 18.40%	13.05%
WACC	7.8% - 9.9%	8.8%

WACC

SKN.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.36	0.44

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.80%	9.80%

Tax rate	15.30%	23.00%
Debt/Equity ratio	0.02	0.02
Cost of debt	7.70%	18.40%

After-tax WACC	7.8%	9.9%


Selected WACC	8.8%

SKN.WA'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 SKN.WA:

cost_of_equity (8.80%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.36) + 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.