SIMEC Atlantis Energy Ltd (SAE.L) WACC Analysis

As of June 2, 2025, SIMEC Atlantis Energy Ltd (SAE.L) carries a Weighted Average Cost of Capital (WACC) of 5.9%. WACC reflects the blended rate SIMEC Atlantis Energy Ltd must pay to both equity and debt holders.

Within that, the cost of equity is 5.6%, the cost of debt is 4.0%, and the effective tax rate is 1.6%.

Breakdown of WACC Components

• Long-term bond rate: 4.0% – 4.5%
• Equity market risk premium: 6.0% – 7.0%
• Adjusted beta: 0.26 – 0.99
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 3.33

What It Means for Investors

With a selected WACC of 5.9%, SIMEC Atlantis Energy Ltd must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.