SLP.L
Sylvania Platinum Ltd
Price:  
45.80 
GBP
Volume:  
252,067.00
Bermuda | Metals & Mining
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SLP.L WACC - Weighted Average Cost of Capital

The WACC of Sylvania Platinum Ltd (SLP.L) is 9.8%.

The Cost of Equity of Sylvania Platinum Ltd (SLP.L) is 9.85%.
The Cost of Debt of Sylvania Platinum Ltd (SLP.L) is 5.50%.

Range Selected
Cost of equity 8.20% - 11.50% 9.85%
Tax rate 30.50% - 31.30% 30.90%
Cost of debt 4.00% - 7.00% 5.50%
WACC 8.1% - 11.5% 9.8%
WACC

SLP.L WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.7 0.94
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.20% 11.50%
Tax rate 30.50% 31.30%
Debt/Equity ratio 0.01 0.01
Cost of debt 4.00% 7.00%
After-tax WACC 8.1% 11.5%
Selected WACC 9.8%

SLP.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 SLP.L:

cost_of_equity (9.85%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.7) + 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.