The WACC of Access Intelligence PLC (ACC.L) is 6.8%.
| Range | Selected | |
| Cost of equity | 5.60% - 8.20% | 6.90% |
| Tax rate | 23.40% - 30.40% | 26.90% |
| Cost of debt | 4.80% - 7.00% | 5.90% |
| WACC | 5.6% - 8.1% | 6.8% |
| Category | Low | High |
| Long-term bond rate | 3.7% | 4.2% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.31 | 0.49 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.60% | 8.20% |
| Tax rate | 23.40% | 30.40% |
| Debt/Equity ratio | 0.03 | 0.03 |
| Cost of debt | 4.80% | 7.00% |
| After-tax WACC | 5.6% | 8.1% |
| Selected WACC | 6.8% | |
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 ACC.L:
cost_of_equity (6.90%) = risk_free_rate (3.95%) + equity_risk_premium (6.50%) * adjusted_beta (0.31) + 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.