SNCM.TA WACC - Weighted Average Cost of Capital

The WACC of Suny Cellular Communication Ltd (SNCM.TA) is 7.5%.

The Cost of Equity of Suny Cellular Communication Ltd (SNCM.TA) is 9.25%.

The Cost of Debt of Suny Cellular Communication Ltd (SNCM.TA) is 4.70%.

	Range	Selected
Cost of equity	7.80% - 10.70%	9.25%
Tax rate	18.50% - 19.30%	18.90%
Cost of debt	4.00% - 5.40%	4.70%
WACC	6.4% - 8.7%	7.5%

WACC

SNCM.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.49	0.68

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.80%	10.70%

Tax rate	18.50%	19.30%
Debt/Equity ratio	0.47	0.47
Cost of debt	4.00%	5.40%

After-tax WACC	6.4%	8.7%


Selected WACC	7.5%

SNCM.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 SNCM.TA:

cost_of_equity (9.25%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.49) + 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.