ADT.L
Adept Technology Group PLC
Price:  
200.50 
GBP
Volume:  
4,173.00
United Kingdom | Diversified Telecommunication Services
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ADT.L WACC - Weighted Average Cost of Capital

The WACC of Adept Technology Group PLC (ADT.L) is 6.7%.

The Cost of Equity of Adept Technology Group PLC (ADT.L) is 8.70%.
The Cost of Debt of Adept Technology Group PLC (ADT.L) is 6.70%.

Range Selected
Cost of equity 7.70% - 9.70% 8.70%
Tax rate 29.00% - 39.60% 34.30%
Cost of debt 4.20% - 9.20% 6.70%
WACC 5.6% - 7.9% 6.7%
WACC

ADT.L WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.61 0.68
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.70% 9.70%
Tax rate 29.00% 39.60%
Debt/Equity ratio 0.81 0.81
Cost of debt 4.20% 9.20%
After-tax WACC 5.6% 7.9%
Selected WACC 6.7%

ADT.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 ADT.L:

cost_of_equity (8.70%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.61) + 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.