AFX.L WACC - Weighted Average Cost of Capital
The WACC of Alpha FX Group PLC (AFX.L) is 8.7%.
| Range | Selected | |
| Cost of equity | 7.1% - 10.4% | 8.75% |
| Tax rate | 19.0% - 19.9% | 19.45% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.0% - 10.3% | 8.7% |
| Category | Low | High |
| Long-term bond rate | 3.6% | 4.1% |
| Equity market risk premium | 5.3% | 6.3% |
| Adjusted beta | 0.64 | 0.91 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.1% | 10.4% |
| Tax rate | 19.0% | 19.9% |
| Debt/Equity ratio | 0.02 | 0.02 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.0% | 10.3% |
| Selected WACC | 8.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| AFX.L | Alpha FX Group PLC | 0.01 | 2.06 | 2.05 |
| ADE.DE | Bitcoin Group SE | 0 | 1.13 | 1.12 |
| AGFX.L | Argentex Group PLC | 3.4 | -0.71 | -0.19 |
| ALNT.MC | Alantra Partners SA | 0.14 | 0.11 | 0.1 |
| CRS.WA | Copernicus Securities SA | 0.1 | -0.1 | -0.09 |
| FKE.L | Fiske PLC | 0.01 | -0.12 | -0.12 |
| INVEO.IS | Inveo Yatirim Holding AS | 0.01 | 0.44 | 0.43 |
| NUM.L | Numis Corporation PLC | 0.11 | -0.01 | -0.01 |
| PRO.MI | Banca Profilo SpA | 7.51 | 0.61 | 0.09 |
| XTB.WA | X Trade Brokers Dom Maklerski SA | 0 | 0.96 | 0.96 |
| Low | High | |
| Unlevered beta | 0.05 | 0.23 |
| Relevered beta | 0.46 | 0.87 |
| Adjusted relevered beta | 0.64 | 0.91 |
AFX.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 AFX.L:
cost_of_equity (8.75%) = risk_free_rate (3.85%) + equity_risk_premium (5.80%) * adjusted_beta (0.64) + 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.