BAG.L WACC - Weighted Average Cost of Capital
The WACC of A.G.Barr PLC (BAG.L) is 9.3%.
| Range | Selected | |
| Cost of equity | 8.2% - 10.5% | 9.35% |
| Tax rate | 25.2% - 25.4% | 25.3% |
| Cost of debt | 4.0% - 4.6% | 4.3% |
| WACC | 8.1% - 10.5% | 9.3% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.7 | 0.79 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.2% | 10.5% |
| Tax rate | 25.2% | 25.4% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 4.0% | 4.6% |
| After-tax WACC | 8.1% | 10.5% |
| Selected WACC | 9.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BAG.L | A.G.Barr PLC | 0.01 | 0.47 | 0.47 |
| CCOLA.IS | Coca-Cola Icecek AS | 0.22 | 0.92 | 0.79 |
| EXC.WA | Excellence SA | 0.2 | 0.74 | 0.64 |
| FEVR.L | Fevertree Drinks PLC | 0.01 | 1.57 | 1.56 |
| KOFOL.PR | Kofola CeskoSlovensko as | 0.38 | 0.64 | 0.5 |
| KRSTL.IS | Kristal Kola ve Mesrubat Sanayi Ticaret AS | 0.01 | 1.61 | 1.6 |
| KVT.WA | Krynica Vitamin SA | 0.35 | 0.53 | 0.42 |
| NICL.L | Nichols PLC | 0.01 | 0.76 | 0.76 |
| PINSU.IS | Pinar Su ve Icecek Sanayi ve Ticaret AS | 0.83 | 0.93 | 0.57 |
| SPA.BR | Societe de Services de Participations, de Direction et d'Elaboration SA | 0 | -0.18 | -0.18 |
| Low | High | |
| Unlevered beta | 0.54 | 0.69 |
| Relevered beta | 0.55 | 0.69 |
| Adjusted relevered beta | 0.7 | 0.79 |
BAG.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 BAG.L:
cost_of_equity (9.35%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * 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.