SYN.IC WACC - Weighted Average Cost of Capital
The WACC of Syn hf (SYN.IC) is 7.9%.
| Range | Selected | |
| Cost of equity | 14.0% - 17.2% | 15.6% |
| Tax rate | 14.2% - 16.4% | 15.3% |
| Cost of debt | 5.7% - 7.0% | 6.35% |
| WACC | 7.1% - 8.6% | 7.9% |
| Category | Low | High |
| Long-term bond rate | 7.1% | 7.6% |
| Equity market risk premium | 6.3% | 7.3% |
| Adjusted beta | 1.09 | 1.24 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 14.0% | 17.2% |
| Tax rate | 14.2% | 16.4% |
| Debt/Equity ratio | 3.11 | 3.11 |
| Cost of debt | 5.7% | 7.0% |
| After-tax WACC | 7.1% | 8.6% |
| Selected WACC | 7.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SYN.IC | Syn hf | 3.11 | 0.08 | 0.02 |
| ADT.L | Adept Technology Group PLC | 0.81 | 1.5 | 0.89 |
| E4C.DE | Ecotel Communication AG | 0.15 | 0.32 | 0.29 |
| LLN.MC | Lleidanetworks Serveis Telematics SA | 0.36 | 0.62 | 0.48 |
| NEWS.AT | Newsphone Hellas SA | 0.17 | 0.48 | 0.42 |
| PHR.LS | Pharol SGPS SA | 0 | 0.42 | 0.42 |
| R22.WA | R22 SA | 0.33 | 0.43 | 0.34 |
| SIMINN.IC | Siminn hf | 0.52 | 0.43 | 0.3 |
| TLS.WA | Telestrada SA | 1.11 | 0.32 | 0.16 |
| U2K.WA | Unima 2000 Systemy Teleinformatyczne SA | 0.13 | 0.18 | 0.17 |
| Low | High | |
| Unlevered beta | 0.29 | 0.37 |
| Relevered beta | 1.13 | 1.36 |
| Adjusted relevered beta | 1.09 | 1.24 |
SYN.IC'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 SYN.IC:
cost_of_equity (15.60%) = risk_free_rate (7.35%) + equity_risk_premium (6.80%) * adjusted_beta (1.09) + 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.