SNX.WA WACC - Weighted Average Cost of Capital

The WACC of Sunex SA (SNX.WA) is 8.4%.

The Cost of Equity of Sunex SA (SNX.WA) is 11.05%.

The Cost of Debt of Sunex SA (SNX.WA) is 5.80%.

	Range	Selected
Cost of equity	9.70% - 12.40%	11.05%
Tax rate	18.70% - 19.30%	19.00%
Cost of debt	4.60% - 7.00%	5.80%
WACC	7.3% - 9.6%	8.4%

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	0.67	0.81

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.70%	12.40%

Tax rate	18.70%	19.30%
Debt/Equity ratio	0.7	0.7
Cost of debt	4.60%	7.00%

After-tax WACC	7.3%	9.6%


Selected WACC	8.4%

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 (11.05%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.67) + 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.