The WACC of Augean PLC (AUG.L) is 7.8%.
Range | Selected | |
Cost of equity | 6.7% - 9.3% | 8% |
Tax rate | 18.3% - 19.3% | 18.8% |
Cost of debt | 5.0% - 5.0% | 5% |
WACC | 6.6% - 9.1% | 7.8% |
Category | Low | High |
Long-term bond rate | 2.9% | 3.4% |
Equity market risk premium | 5.3% | 6.3% |
Adjusted beta | 0.7 | 0.85 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 6.7% | 9.3% |
Tax rate | 18.3% | 19.3% |
Debt/Equity ratio | 0.04 | 0.04 |
Cost of debt | 5.0% | 5.0% |
After-tax WACC | 6.6% | 9.1% |
Selected WACC | 7.8% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
AUG.L | Augean PLC | 0.04 | 0.73 | 0.71 |
ALESA.PA | Ecoslops SA | 3.46 | 0.03 | 0.01 |
ATH.MI | Ambienthesis SpA | 1.15 | 0.48 | 0.25 |
AURE.PA | Aurea SA | 1.02 | 0.21 | 0.11 |
GRI.MC | Grino Ecologic SA | 0.52 | -0.17 | -0.12 |
GTS.WA | Geotrans SA | 0 | 0.2 | 0.2 |
MBR.WA | Mo-Bruk SA | 0.11 | 0.24 | 0.22 |
OBL.WA | Orzel Bialy SA | 0.01 | 0.1 | 0.1 |
OREGE.PA | Orege SA | 3.9 | 0.04 | 0.01 |
VOW.OL | Vow ASA | 0.99 | 2.06 | 1.14 |
Low | High | |
Unlevered beta | 0.11 | 0.21 |
Relevered beta | 0.55 | 0.78 |
Adjusted relevered beta | 0.7 | 0.85 |
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 AUG.L:
cost_of_equity (8.00%) = risk_free_rate (3.15%) + equity_risk_premium (5.80%) * adjusted_beta (0.7) + 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.