ATQT.L
ATTRAQT Group plc
Price:  
30.00 
GBP
Volume:  
3,206,340.00
United Kingdom | Software
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ATQT.L WACC - Weighted Average Cost of Capital

The WACC of ATTRAQT Group plc (ATQT.L) is 7.5%.

The Cost of Equity of ATTRAQT Group plc (ATQT.L) is 7.55%.
The Cost of Debt of ATTRAQT Group plc (ATQT.L) is 7.00%.

Range Selected
Cost of equity 6.10% - 9.00% 7.55%
Tax rate 6.00% - 11.40% 8.70%
Cost of debt 7.00% - 7.00% 7.00%
WACC 6.1% - 8.9% 7.5%
WACC

ATQT.L WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.34 0.57
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.10% 9.00%
Tax rate 6.00% 11.40%
Debt/Equity ratio 0.03 0.03
Cost of debt 7.00% 7.00%
After-tax WACC 6.1% 8.9%
Selected WACC 7.5%

ATQT.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 ATQT.L:

cost_of_equity (7.55%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.34) + 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.