3IN.L
3I Infrastructure PLC
Price:  
334.00 
GBP
Volume:  
923,535.00
Jersey | N/A
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3IN.L WACC - Weighted Average Cost of Capital

The WACC of 3I Infrastructure PLC (3IN.L) is 9.1%.

The Cost of Equity of 3I Infrastructure PLC (3IN.L) is 9.95%.
The Cost of Debt of 3I Infrastructure PLC (3IN.L) is 5.20%.

Range Selected
Cost of equity 8.50% - 11.40% 9.95%
Tax rate 19.00% - 19.00% 19.00%
Cost of debt 5.20% - 5.20% 5.20%
WACC 7.9% - 10.4% 9.1%
WACC

3IN.L WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.76 0.92
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.50% 11.40%
Tax rate 19.00% 19.00%
Debt/Equity ratio 0.17 0.17
Cost of debt 5.20% 5.20%
After-tax WACC 7.9% 10.4%
Selected WACC 9.1%

3IN.L'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 3IN.L:

cost_of_equity (9.95%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.76) + 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.