SNG.WA WACC - Weighted Average Cost of Capital

The WACC of Synerga.Fund SA (SNG.WA) is 10.4%.

The Cost of Equity of Synerga.Fund SA (SNG.WA) is 10.75%.

The Cost of Debt of Synerga.Fund SA (SNG.WA) is 5.00%.

	Range	Selected
Cost of equity	9.00% - 12.50%	10.75%
Tax rate	18.70% - 19.90%	19.30%
Cost of debt	5.00% - 5.00%	5.00%
WACC	8.7% - 12.1%	10.4%

WACC

SNG.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.55	0.82

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.00%	12.50%

Tax rate	18.70%	19.90%
Debt/Equity ratio	0.05	0.05
Cost of debt	5.00%	5.00%

After-tax WACC	8.7%	12.1%


Selected WACC	10.4%

SNG.WA'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 SNG.WA:

cost_of_equity (10.75%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.55) + 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.