SD Standard Drilling PLC (SDSD.OL) WACC Analysis

As of June 2, 2025, SD Standard Drilling PLC (SDSD.OL) carries a Weighted Average Cost of Capital (WACC) of 6.4%. WACC reflects the blended rate SD Standard Drilling PLC must pay to both equity and debt holders.

Within that, the cost of equity is 6.4%, the cost of debt is 5.0%, and the effective tax rate is 0.3%.

Breakdown of WACC Components

• Long-term bond rate: 3.3% – 3.8%
• Equity market risk premium: 5.1% – 6.1%
• Adjusted beta: 0.59 – 0.8
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 1

What It Means for Investors

With a selected WACC of 6.4%, SD Standard Drilling PLC must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.