SNFL.TA WACC - Weighted Average Cost of Capital

The WACC of Sunflower Sustainable Investments Ltd (SNFL.TA) is 9.8%.

The Cost of Equity of Sunflower Sustainable Investments Ltd (SNFL.TA) is 8.40%.

The Cost of Debt of Sunflower Sustainable Investments Ltd (SNFL.TA) is 15.45%.

	Range	Selected
Cost of equity	7.50% - 9.30%	8.40%
Tax rate	14.70% - 34.70%	24.70%
Cost of debt	6.10% - 24.80%	15.45%
WACC	6.2% - 13.4%	9.8%

WACC

SNFL.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.44	0.49

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.50%	9.30%

Tax rate	14.70%	34.70%
Debt/Equity ratio	1.42	1.42
Cost of debt	6.10%	24.80%

After-tax WACC	6.2%	13.4%


Selected WACC	9.8%

SNFL.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 SNFL.TA:

cost_of_equity (8.40%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.44) + 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.