SNT.WA WACC - Weighted Average Cost of Capital

The WACC of Synektik SA (SNT.WA) is 10.1%.

The Cost of Equity of Synektik SA (SNT.WA) is 10.15%.

The Cost of Debt of Synektik SA (SNT.WA) is 5.75%.

	Range	Selected
Cost of equity	8.50% - 11.80%	10.15%
Tax rate	19.30% - 20.30%	19.80%
Cost of debt	5.40% - 6.10%	5.75%
WACC	8.5% - 11.7%	10.1%

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	0.48	0.72

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.50%	11.80%

Tax rate	19.30%	20.30%
Debt/Equity ratio	0.01	0.01
Cost of debt	5.40%	6.10%

After-tax WACC	8.5%	11.7%


Selected WACC	10.1%

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 (10.15%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.48) + 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.