AUGM.L
Augmentum Fintech PLC
Price:  
81.80 
GBP
Volume:  
200,612.00
United Kingdom | N/A
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AUGM.L WACC - Weighted Average Cost of Capital

The WACC of Augmentum Fintech PLC (AUGM.L) is 10.7%.

The Cost of Equity of Augmentum Fintech PLC (AUGM.L) is 10.65%.
The Cost of Debt of Augmentum Fintech PLC (AUGM.L) is 5.00%.

Range Selected
Cost of equity 9.10% - 12.20% 10.65%
Tax rate 19.00% - 19.00% 19.00%
Cost of debt 5.00% - 5.00% 5.00%
WACC 9.1% - 12.2% 10.7%
WACC

AUGM.L WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.86 1.04
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.10% 12.20%
Tax rate 19.00% 19.00%
Debt/Equity ratio 0 0
Cost of debt 5.00% 5.00%
After-tax WACC 9.1% 12.2%
Selected WACC 10.7%

AUGM.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 AUGM.L:

cost_of_equity (10.65%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.86) + 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.