SNT.WA WACC - Weighted Average Cost of Capital

The WACC of Synektik SA (SNT.WA) is 11.2%.

The Cost of Equity of Synektik SA (SNT.WA) is 11.25%.

The Cost of Debt of Synektik SA (SNT.WA) is 6.65%.

	Range	Selected
Cost of equity	10.20% - 12.30%	11.25%
Tax rate	18.90% - 19.70%	19.30%
Cost of debt	6.10% - 7.20%	6.65%
WACC	10.1% - 12.2%	11.2%

WACC

SNT.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.74	0.79

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.20%	12.30%

Tax rate	18.90%	19.70%
Debt/Equity ratio	0.02	0.02
Cost of debt	6.10%	7.20%

After-tax WACC	10.1%	12.2%


Selected WACC	11.2%

SNT.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 SNT.WA:

cost_of_equity (11.25%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.74) + 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.