SUPER.BK WACC - Weighted Average Cost of Capital

The WACC of Super Energy Corporation PCL (SUPER.BK) is 10.5%.

The Cost of Equity of Super Energy Corporation PCL (SUPER.BK) is 54.05%.

The Cost of Debt of Super Energy Corporation PCL (SUPER.BK) is 10.20%.

	Range	Selected
Cost of equity	43.40% - 64.70%	54.05%
Tax rate	10.80% - 35.40%	23.10%
Cost of debt	6.10% - 14.30%	10.20%
WACC	8.0% - 13.0%	10.5%

WACC

SUPER.BK WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	7.4%	8.4%
Adjusted beta	5.49	7.25

Additional risk adjustments	0.0%	0.5%
Cost of equity	43.40%	64.70%

Tax rate	10.80%	35.40%
Debt/Equity ratio	14.02	14.02
Cost of debt	6.10%	14.30%

After-tax WACC	8.0%	13.0%


Selected WACC	10.5%

SUPER.BK'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 SUPER.BK:

cost_of_equity (54.05%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (5.49) + 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.