SNW.WA WACC - Weighted Average Cost of Capital
The WACC of Sanwil Holding SA (SNW.WA) is 9.3%.
| Range | Selected | |
| Cost of equity | 7.9% - 11.7% | 9.8% |
| Tax rate | 11.8% - 15.9% | 13.85% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 7.5% - 11.2% | 9.3% |
| Category | Low | High |
| Long-term bond rate | 5.5% | 6.0% |
| Equity market risk premium | 6.3% | 7.3% |
| Adjusted beta | 0.38 | 0.71 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.9% | 11.7% |
| Tax rate | 11.8% | 15.9% |
| Debt/Equity ratio | 0.1 | 0.1 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 7.5% | 11.2% |
| Selected WACC | 9.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SNW.WA | Sanwil Holding SA | 0.1 | 0.55 | 0.5 |
| AGM.L | Applied Graphene Materials PLC | 0.02 | 0.58 | 0.57 |
| ALGBE.PA | Global Bioenergies SA | 3.05 | -0.69 | -0.19 |
| BIOM.L | Biome Technologies PLC | 2.22 | -0.17 | -0.06 |
| ERG.WA | ERG SA | 0.19 | 0.18 | 0.15 |
| GEDZA.IS | Gediz Ambalaj Sanayi ve Ticaret AS | 0.08 | 0.62 | 0.58 |
| ITX.L | Itaconix PLC | 0.09 | -0.13 | -0.12 |
| ORL.WA | Orzel SA | 0.66 | -0.38 | -0.24 |
| SANFM.IS | Sanifoam Sunger Sanayi ve Ticaret AS | 0.23 | 1.16 | 0.97 |
| TMPOL.IS | Temapol Polimer Plastik ve Insaat Sanayi Ticaret AS | 0.28 | 0.67 | 0.54 |
| Low | High | |
| Unlevered beta | 0.07 | 0.52 |
| Relevered beta | 0.07 | 0.57 |
| Adjusted relevered beta | 0.38 | 0.71 |
SNW.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 SNW.WA:
cost_of_equity (9.80%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.38) + 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.