BAG.L
A.G.Barr PLC
Price:  
701 
GBP
Volume:  
237,680
United Kingdom | Beverages

BAG.L WACC - Weighted Average Cost of Capital

The WACC of A.G.Barr PLC (BAG.L) is 9.3%.

The Cost of Equity of A.G.Barr PLC (BAG.L) is 9.35%.
The Cost of Debt of A.G.Barr PLC (BAG.L) is 4.3%.

RangeSelected
Cost of equity8.2% - 10.5%9.35%
Tax rate25.2% - 25.4%25.3%
Cost of debt4.0% - 4.6%4.3%
WACC8.1% - 10.5%9.3%
WACC

BAG.L WACC calculation

CategoryLowHigh
Long-term bond rate4.0%4.5%
Equity market risk premium6.0%7.0%
Adjusted beta0.70.79
Additional risk adjustments0.0%0.5%
Cost of equity8.2%10.5%
Tax rate25.2%25.4%
Debt/Equity ratio
0.010.01
Cost of debt4.0%4.6%
After-tax WACC8.1%10.5%
Selected WACC9.3%

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.