BLOE.L WACC - Weighted Average Cost of Capital

The WACC of Block Energy PLC (BLOE.L) is 7.5%.

The Cost of Equity of Block Energy PLC (BLOE.L) is 7.50%.

The Cost of Debt of Block Energy PLC (BLOE.L) is 9.20%.

	Range	Selected
Cost of equity	6.70% - 8.30%	7.50%
Tax rate	19.00% - 19.00%	19.00%
Cost of debt	9.20% - 9.20%	9.20%
WACC	6.9% - 8.2%	7.5%

WACC

BLOE.L WACC calculation

Category	Low	High

Long-term bond rate	4.0%	4.5%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.46	0.48

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.70%	8.30%

Tax rate	19.00%	19.00%
Debt/Equity ratio	0.19	0.19
Cost of debt	9.20%	9.20%

After-tax WACC	6.9%	8.2%


Selected WACC	7.5%

BLOE.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 BLOE.L:

cost_of_equity (7.50%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.46) + 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.