AQSG.L
Aquila Services Group PLC
Price:  
6.5 
GBP
Volume:  
56,883
United Kingdom | Professional Services

AQSG.L WACC - Weighted Average Cost of Capital

The WACC of Aquila Services Group PLC (AQSG.L) is 8.7%.

The Cost of Equity of Aquila Services Group PLC (AQSG.L) is 8.95%.
The Cost of Debt of Aquila Services Group PLC (AQSG.L) is 5%.

RangeSelected
Cost of equity7.6% - 10.3%8.95%
Tax rate23.4% - 25.8%24.6%
Cost of debt5.0% - 5.0%5%
WACC7.5% - 10.0%8.7%
WACC

AQSG.L WACC calculation

CategoryLowHigh
Long-term bond rate4.0%4.5%
Equity market risk premium6.0%7.0%
Adjusted beta0.610.75
Additional risk adjustments0.0%0.5%
Cost of equity7.6%10.3%
Tax rate23.4%25.8%
Debt/Equity ratio
0.040.04
Cost of debt5.0%5.0%
After-tax WACC7.5%10.0%
Selected WACC8.7%

AQSG.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 AQSG.L:

cost_of_equity (8.95%) = 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.