SNFL.TA WACC - Weighted Average Cost of Capital

The WACC of Sunflower Sustainable Investments Ltd (SNFL.TA) is 7.6%.

The Cost of Equity of Sunflower Sustainable Investments Ltd (SNFL.TA) is 13.05%.

The Cost of Debt of Sunflower Sustainable Investments Ltd (SNFL.TA) is 7.25%.

	Range	Selected
Cost of equity	10.60% - 15.50%	13.05%
Tax rate	14.70% - 34.70%	24.70%
Cost of debt	6.10% - 8.40%	7.25%
WACC	6.8% - 8.5%	7.6%

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	0.94	1.35

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.60%	15.50%

Tax rate	14.70%	34.70%
Debt/Equity ratio	2.35	2.35
Cost of debt	6.10%	8.40%

After-tax WACC	6.8%	8.5%


Selected WACC	7.6%

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 (13.05%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.94) + 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.