SMNIN.TA WACC - Weighted Average Cost of Capital

The WACC of Shemen Industries Ltd (SMNIN.TA) is 7.1%.

The Cost of Equity of Shemen Industries Ltd (SMNIN.TA) is 7.15%.

The Cost of Debt of Shemen Industries Ltd (SMNIN.TA) is 7.45%.

	Range	Selected
Cost of equity	6.20% - 8.10%	7.15%
Tax rate	24.40% - 26.10%	25.25%
Cost of debt	7.00% - 7.90%	7.45%
WACC	6.2% - 8.1%	7.1%

WACC

SMNIN.TA WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	6.6%	7.6%
Adjusted beta	0.34	0.42

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.20%	8.10%

Tax rate	24.40%	26.10%
Debt/Equity ratio	0	0
Cost of debt	7.00%	7.90%

After-tax WACC	6.2%	8.1%


Selected WACC	7.1%

SMNIN.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 SMNIN.TA:

cost_of_equity (7.15%) = risk_free_rate (4.15%) + equity_risk_premium (7.10%) * adjusted_beta (0.34) + 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.