SLA.AX WACC - Weighted Average Cost of Capital
The WACC of Silk Laser Australia Ltd (SLA.AX) is 6.7%.
| Range | Selected | |
| Cost of equity | 8.0% - 12.0% | 10% |
| Tax rate | 30.0% - 30.0% | 30% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.7% - 7.7% | 6.7% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.77 | 1.14 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.0% | 12.0% |
| Tax rate | 30.0% | 30.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.7% | 7.7% |
| Selected WACC | 6.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SLA.AX | Silk Laser Australia Ltd | 1.04 | 3.48 | 2.02 |
| 5G3.SI | Talkmed Group Ltd | 0.01 | 0.19 | 0.19 |
| 6099.T | Elan Corp | 0 | 0.78 | 0.78 |
| 8307.HK | Medicskin Holdings Ltd | 0.41 | 0.72 | 0.56 |
| AHX.AX | Apiam Animal Health Ltd | 1.07 | 0.59 | 0.34 |
| BD1.AX | BARD1 Life Sciences Ltd | 0.01 | -0.6 | -0.6 |
| FFC.AX | Farmaforce Ltd | 0.3 | 0.04 | 0.03 |
| HLA.AX | Healthia Ltd | 0.64 | 1.36 | 0.94 |
| RHY.AX | Rhythm Biosciences Ltd | 0.01 | 0.95 | 0.94 |
| SPZ.AX | Smart Parking Ltd | 0.03 | 1.08 | 1.06 |
| TTB.AX | Total Brain Ltd | 3.03 | 1.33 | 0.43 |
| Low | High | |
| Unlevered beta | 0.43 | 0.78 |
| Relevered beta | 0.66 | 1.21 |
| Adjusted relevered beta | 0.77 | 1.14 |
SLA.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 SLA.AX:
cost_of_equity (10.00%) = risk_free_rate (4.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.77) + 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.