The WACC of Arcontech Group PLC (ARC.L) is 8.7%.
Range | Selected | |
Cost of equity | 7.4% - 10.0% | 8.7% |
Tax rate | 2.1% - 8.5% | 5.3% |
Cost of debt | 4.6% - 14.4% | 9.5% |
WACC | 7.2% - 10.2% | 8.7% |
Category | Low | High |
Long-term bond rate | 4.0% | 4.5% |
Equity market risk premium | 6.0% | 7.0% |
Adjusted beta | 0.56 | 0.72 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 7.4% | 10.0% |
Tax rate | 2.1% | 8.5% |
Debt/Equity ratio | 0.05 | 0.05 |
Cost of debt | 4.6% | 14.4% |
After-tax WACC | 7.2% | 10.2% |
Selected WACC | 8.7% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
ARC.L | Arcontech Group PLC | 0.05 | -0.45 | -0.43 |
ALTTI.PA | Travel Technology Interactive SA | 0.05 | 0.36 | 0.34 |
IMG.WA | Optigis SA | 0 | 1.13 | 1.13 |
M4B.WA | M4B SA | 0.14 | 0.19 | 0.17 |
MNO.L | Maestrano Group PLC | 0.01 | 0.5 | 0.5 |
QPR1V.HE | QPR Software Plc | 0.08 | 0.34 | 0.31 |
RDT.L | Rosslyn Data Technologies PLC | 0.13 | 0.73 | 0.65 |
SMART.IS | Smartiks Yazilim AS | 0.04 | 0.97 | 0.93 |
TIDE.L | Crimson Tide PLC | 0.21 | 0.86 | 0.72 |
XMR.ST | XMReality AB (publ) | 0.98 | -0.12 | -0.06 |
Low | High | |
Unlevered beta | 0.33 | 0.56 |
Relevered beta | 0.34 | 0.58 |
Adjusted relevered beta | 0.56 | 0.72 |
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 ARC.L:
cost_of_equity (8.70%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.56) + 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.