SNX.WA WACC - Weighted Average Cost of Capital

The WACC of Sunex SA (SNX.WA) is 9.1%.

The Cost of Equity of Sunex SA (SNX.WA) is 12.75%.

The Cost of Debt of Sunex SA (SNX.WA) is 8.40%.

	Range	Selected
Cost of equity	11.30% - 14.20%	12.75%
Tax rate	14.30% - 18.70%	16.50%
Cost of debt	7.00% - 9.80%	8.40%
WACC	8.0% - 10.3%	9.1%

WACC

SNX.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.92	1.05

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.30%	14.20%

Tax rate	14.30%	18.70%
Debt/Equity ratio	1.71	1.71
Cost of debt	7.00%	9.80%

After-tax WACC	8.0%	10.3%


Selected WACC	9.1%

SNX.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 SNX.WA:

cost_of_equity (12.75%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.92) + 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.