SNEX
Stonex Group Inc
Price:  
84.65 
USD
Volume:  
358,536.00
United States | Capital Markets
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SNEX WACC - Weighted Average Cost of Capital

The WACC of Stonex Group Inc (SNEX) is 11.6%.

The Cost of Equity of Stonex Group Inc (SNEX) is 9.30%.
The Cost of Debt of Stonex Group Inc (SNEX) is 16.75%.

Range Selected
Cost of equity 7.70% - 10.90% 9.30%
Tax rate 25.00% - 25.60% 25.30%
Cost of debt 9.60% - 23.90% 16.75%
WACC 7.3% - 15.9% 11.6%
WACC

SNEX WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.84 1.07
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.70% 10.90%
Tax rate 25.00% 25.60%
Debt/Equity ratio 2.68 2.68
Cost of debt 9.60% 23.90%
After-tax WACC 7.3% 15.9%
Selected WACC 11.6%

SNEX'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 SNEX:

cost_of_equity (9.30%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.84) + 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.