The WACC of Star Navigation Systems Group Ltd (SNA.CN) is 6.0%.
Range | Selected | |
Cost of equity | 4.8% - 7.4% | 6.1% |
Tax rate | 25.9% - 26.5% | 26.2% |
Cost of debt | 5.0% - 5.0% | 5% |
WACC | 4.8% - 7.2% | 6.0% |
Category | Low | High |
Long-term bond rate | 3.2% | 3.7% |
Equity market risk premium | 5.1% | 6.1% |
Adjusted beta | 0.33 | 0.53 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 4.8% | 7.4% |
Tax rate | 25.9% | 26.5% |
Debt/Equity ratio | 0.07 | 0.07 |
Cost of debt | 5.0% | 5.0% |
After-tax WACC | 4.8% | 7.2% |
Selected WACC | 6.0% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
SNA.CN | Star Navigation Systems Group Ltd | 0.07 | 2.73 | 2.59 |
AERG | Applied Energetics Inc | 0 | -0.04 | -0.04 |
AIRI | Air Industries Group | 1.94 | 0.97 | 0.4 |
ASTC | Astrotech Corp | 0.02 | 0.28 | 0.28 |
BUKS | Butler National Corp | 0.41 | 0.94 | 0.72 |
ETCC | Environmental Tectonics Corp | 0.98 | 0.53 | 0.3 |
FLY.V | FLYHT Aerospace Solutions Ltd | 0.52 | -0.76 | -0.55 |
GIGA | Giga-tronics Inc | 294.6 | -0.3 | 0 |
NTS.V | Nanotech Security Corp | 0.01 | -0.04 | -0.04 |
TIKK | Tel-Instrument Electronics Corp | 0.06 | 0.44 | 0.42 |
Low | High | |
Unlevered beta | 0.17 | 0.34 |
Relevered beta | 0 | 0.3 |
Adjusted relevered beta | 0.33 | 0.53 |
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 SNA.CN:
cost_of_equity (6.10%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.33) + 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.