AUG.L
Augean PLC
Price:  
371.00 
GBP
Volume:  
685,987.00
United Kingdom | Commercial Services & Supplies
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

AUG.L WACC - Weighted Average Cost of Capital

The WACC of Augean PLC (AUG.L) is 7.8%.

The Cost of Equity of Augean PLC (AUG.L) is 8.00%.
The Cost of Debt of Augean PLC (AUG.L) is 5.00%.

Range Selected
Cost of equity 6.70% - 9.30% 8.00%
Tax rate 18.30% - 19.30% 18.80%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.6% - 9.1% 7.8%
WACC

AUG.L WACC calculation

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 6.70% 9.30%
Tax rate 18.30% 19.30%
Debt/Equity ratio 0.04 0.04
Cost of debt 5.00% 5.00%
After-tax WACC 6.6% 9.1%
Selected WACC 7.8%

AUG.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 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.