SUL.AX
Super Retail Group Ltd
Price:  
13.44 
AUD
Volume:  
1,236,063.00
Australia | Specialty Retail
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SUL.AX WACC - Weighted Average Cost of Capital

The WACC of Super Retail Group Ltd (SUL.AX) is 7.0%.

The Cost of Equity of Super Retail Group Ltd (SUL.AX) is 8.20%.
The Cost of Debt of Super Retail Group Ltd (SUL.AX) is 5.00%.

Range Selected
Cost of equity 6.90% - 9.50% 8.20%
Tax rate 29.50% - 29.90% 29.70%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.0% - 7.9% 7.0%
WACC

SUL.AX WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.57 0.74
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.90% 9.50%
Tax rate 29.50% 29.90%
Debt/Equity ratio 0.36 0.36
Cost of debt 5.00% 5.00%
After-tax WACC 6.0% 7.9%
Selected WACC 7.0%

SUL.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 SUL.AX:

cost_of_equity (8.20%) = risk_free_rate (4.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.57) + 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.