SPNTC.TA WACC - Weighted Average Cost of Capital

The WACC of NR Spuntech Industries Ltd (SPNTC.TA) is 9.4%.

The Cost of Equity of NR Spuntech Industries Ltd (SPNTC.TA) is 9.65%.

The Cost of Debt of NR Spuntech Industries Ltd (SPNTC.TA) is 10.65%.

	Range	Selected
Cost of equity	8.30% - 11.00%	9.65%
Tax rate	11.90% - 16.20%	14.05%
Cost of debt	8.00% - 13.30%	10.65%
WACC	7.8% - 11.1%	9.4%

WACC

SPNTC.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.56	0.73

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.30%	11.00%

Tax rate	11.90%	16.20%
Debt/Equity ratio	0.76	0.76
Cost of debt	8.00%	13.30%

After-tax WACC	7.8%	11.1%


Selected WACC	9.4%

SPNTC.TA'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 SPNTC.TA:

cost_of_equity (9.65%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.56) + 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.