SLV.WA WACC - Weighted Average Cost of Capital

The WACC of Selvita SA (SLV.WA) is 11.7%.

The Cost of Equity of Selvita SA (SLV.WA) is 11.00%.

The Cost of Debt of Selvita SA (SLV.WA) is 15.55%.

	Range	Selected
Cost of equity	9.30% - 12.70%	11.00%
Tax rate	10.40% - 15.90%	13.15%
Cost of debt	5.60% - 25.50%	15.55%
WACC	8.1% - 15.2%	11.7%

WACC

SLV.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.6	0.84

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.30%	12.70%

Tax rate	10.40%	15.90%
Debt/Equity ratio	0.41	0.41
Cost of debt	5.60%	25.50%

After-tax WACC	8.1%	15.2%


Selected WACC	11.7%

SLV.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 SLV.WA:

cost_of_equity (11.00%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.6) + 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.