BNZL.L
Bunzl plc
Price:  
2,496.00 
GBP
Volume:  
1,068,061.00
United Kingdom | Trading Companies & Distributors
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BNZL.L WACC - Weighted Average Cost of Capital

The WACC of Bunzl plc (BNZL.L) is 8.6%.

The Cost of Equity of Bunzl plc (BNZL.L) is 10.90%.
The Cost of Debt of Bunzl plc (BNZL.L) is 4.60%.

Range Selected
Cost of equity 8.80% - 13.00% 10.90%
Tax rate 23.90% - 24.90% 24.40%
Cost of debt 4.00% - 5.20% 4.60%
WACC 7.0% - 10.2% 8.6%
WACC

BNZL.L WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.81 1.14
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.80% 13.00%
Tax rate 23.90% 24.90%
Debt/Equity ratio 0.45 0.45
Cost of debt 4.00% 5.20%
After-tax WACC 7.0% 10.2%
Selected WACC 8.6%

BNZL.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 BNZL.L:

cost_of_equity (10.90%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.81) + 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.