SRY.AX WACC - Weighted Average Cost of Capital
The WACC of Story-I Ltd (SRY.AX) is 4.6%.
| Range | Selected | |
| Cost of equity | 6.3% - 11.4% | 8.85% |
| Tax rate | 1.4% - 16.4% | 8.9% |
| Cost of debt | 4.0% - 5.1% | 4.55% |
| WACC | 4.2% - 4.9% | 4.6% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.45 | 1.04 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.3% | 11.4% |
| Tax rate | 1.4% | 16.4% |
| Debt/Equity ratio | 9.32 | 9.32 |
| Cost of debt | 4.0% | 5.1% |
| After-tax WACC | 4.2% | 4.9% |
| Selected WACC | 4.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SRY.AX | Story-I Ltd | 9.32 | -0.68 | -0.07 |
| 3322.T | Alpha Group Inc | 0.31 | -0.23 | -0.18 |
| 540956.BO | Bhatia Communications & Retail (India) Ltd | 0.07 | -0.02 | -0.02 |
| 9444.T | Toshin Holdings Co Ltd | 4.29 | 0.24 | 0.05 |
| 9446.T | Sakai Holdings Co Ltd | 2.95 | 0.35 | 0.09 |
| 9927.T | Watt Mann Co Ltd | 0.07 | 0.15 | 0.14 |
| JBH.AX | JB Hi-Fi Ltd | 0.06 | 1.32 | 1.25 |
| JYC.AX | Joyce Corporation Ltd | 0.2 | 0.15 | 0.13 |
| TGA.AX | Thorn Group Ltd | 2.84 | 0.59 | 0.15 |
| VTG.AX | Vita Group Ltd | 0.5 | -0.05 | -0.04 |
| Low | High | |
| Unlevered beta | 0.02 | 0.1 |
| Relevered beta | 0.18 | 1.06 |
| Adjusted relevered beta | 0.45 | 1.04 |
SRY.AX'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 SRY.AX:
cost_of_equity (8.85%) = risk_free_rate (4.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.45) + 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.