AVST.L WACC - Weighted Average Cost of Capital
The WACC of Avast PLC (AVST.L) is 8.3%.
| Range | Selected | |
| Cost of equity | 7.8% - 9.7% | 8.75% |
| Tax rate | 21.9% - 24.9% | 23.4% |
| Cost of debt | 4.0% - 4.6% | 4.3% |
| WACC | 7.4% - 9.3% | 8.3% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.63 | 0.68 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.8% | 9.7% |
| Tax rate | 21.9% | 24.9% |
| Debt/Equity ratio | 0.08 | 0.08 |
| Cost of debt | 4.0% | 4.6% |
| After-tax WACC | 7.4% | 9.3% |
| Selected WACC | 8.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| AVST.L | Avast PLC | 0.08 | 0.08 | 0.07 |
| ABS.WA | Asseco Business Solutions SA | 0.02 | 0.69 | 0.68 |
| BLTG.L | Blancco Technology Group PLC | 0.03 | -0.78 | -0.76 |
| IDEA.L | Ideagen PLC | 0.03 | 0.7 | 0.68 |
| IVU.DE | IVU Traffic Technologies AG | 0.06 | 0.38 | 0.36 |
| IXX.DE | init innovation in traffic systems SE | 0.25 | 0.56 | 0.47 |
| KAPE.L | Kape Technologies PLC | 0.24 | 0.54 | 0.46 |
| PRSM.L | Blue Prism Group PLC | 0 | 1.02 | 1.02 |
| SOW.DE | Software AG | 0.24 | 0 | 0 |
| VMX.PA | Verimatrix SA | 1.3 | 1.06 | 0.53 |
| Low | High | |
| Unlevered beta | 0.42 | 0.49 |
| Relevered beta | 0.45 | 0.52 |
| Adjusted relevered beta | 0.63 | 0.68 |
AVST.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 AVST.L:
cost_of_equity (8.75%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.63) + 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.