SLGN.TA WACC - Weighted Average Cost of Capital
The WACC of Solegreen Ltd (SLGN.TA) is 6.0%.
| Range | Selected | |
| Cost of equity | 9.3% - 11.8% | 10.55% |
| Tax rate | 13.5% - 47.9% | 30.7% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.1% - 5.8% | 6.0% |
| Category | Low | High |
| Long-term bond rate | 4.8% | 5.3% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.73 | 0.84 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.3% | 11.8% |
| Tax rate | 13.5% | 47.9% |
| Debt/Equity ratio | 1.85 | 1.85 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.1% | 5.8% |
| Selected WACC | 6.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SLGN.TA | Solegreen Ltd | 1.85 | 0.7 | 0.27 |
| 002015.SZ | GCL Energy Technology Co Ltd | 1.79 | 1.59 | 0.64 |
| 506520.BO | Jayshree Chemicals Ltd | 0.02 | 0.59 | 0.58 |
| 534612.BO | Advance Metering Technology Ltd | 0.28 | 1.24 | 1 |
| EP.BK | Eastern Power Group PCL | 3.41 | 0.75 | 0.19 |
| GEG.VN | Gia Lai Electricity JSC | 1.66 | 0.63 | 0.26 |
| PRIME.BK | Prime Road Power PCL | 11.4 | 1.52 | 0.14 |
| TMP.VN | Thac Mo Hydropower JSC | 0.08 | 0.03 | 0.03 |
| TPCH.BK | TPC Power Holding PCL | 2.94 | 1.16 | 0.33 |
| VSH.VN | Vinh Son Song Hinh Hydropower JSC | 0.27 | 0.18 | 0.14 |
| Low | High | |
| Unlevered beta | 0.23 | 0.3 |
| Relevered beta | 0.6 | 0.76 |
| Adjusted relevered beta | 0.73 | 0.84 |
SLGN.TA'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 SLGN.TA:
cost_of_equity (10.55%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.73) + 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.