SUPER.BK WACC - Weighted Average Cost of Capital

The WACC of Super Energy Corporation PCL (SUPER.BK) is 9.9%.

The Cost of Equity of Super Energy Corporation PCL (SUPER.BK) is 18.40%.

The Cost of Debt of Super Energy Corporation PCL (SUPER.BK) is 10.05%.

	Range	Selected
Cost of equity	10.30% - 26.50%	18.40%
Tax rate	6.10% - 9.50%	7.80%
Cost of debt	5.80% - 14.30%	10.05%
WACC	5.8% - 14.1%	9.9%

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	1.04	2.71

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.30%	26.50%

Tax rate	6.10%	9.50%
Debt/Equity ratio	11.36	11.36
Cost of debt	5.80%	14.30%

After-tax WACC	5.8%	14.1%


Selected WACC	9.9%

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 (18.40%) = risk_free_rate (2.85%) + equity_risk_premium (7.90%) * adjusted_beta (1.04) + 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.