ARB.L
Argo Blockchain PLC
Price:  
2.75 
GBP
Volume:  
537,749.00
United Kingdom | Software
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

ARB.L WACC - Weighted Average Cost of Capital

The WACC of Argo Blockchain PLC (ARB.L) is 11.2%.

The Cost of Equity of Argo Blockchain PLC (ARB.L) is 13.35%.
The Cost of Debt of Argo Blockchain PLC (ARB.L) is 10.70%.

Range Selected
Cost of equity 11.20% - 15.50% 13.35%
Tax rate 0.40% - 2.30% 1.35%
Cost of debt 7.00% - 14.40% 10.70%
WACC 8.0% - 14.4% 11.2%
WACC

ARB.L WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 1.21 1.5
Additional risk adjustments 0.0% 0.5%
Cost of equity 11.20% 15.50%
Tax rate 0.40% 2.30%
Debt/Equity ratio 3.17 3.17
Cost of debt 7.00% 14.40%
After-tax WACC 8.0% 14.4%
Selected WACC 11.2%

ARB.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 ARB.L:

cost_of_equity (13.35%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (1.21) + 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.