BOTB.L WACC - Weighted Average Cost of Capital
The WACC of Best Of The Best PLC (BOTB.L) is 7.2%.
| Range | Selected | |
| Cost of equity | 7.9% - 12.6% | 10.25% |
| Tax rate | 16.8% - 17.5% | 17.15% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.0% - 8.4% | 7.2% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.65 | 1.09 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.9% | 12.6% |
| Tax rate | 16.8% | 17.5% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.0% | 8.4% |
| Selected WACC | 7.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BOTB.L | Best Of The Best PLC | 0.88 | -0.03 | -0.01 |
| ACROUD.ST | Acroud AB | 1.23 | 0.03 | 0.01 |
| EMH.DE | Pferdewetten de AG | 0.06 | 0.34 | 0.32 |
| FLTR.L | Flutter Entertainment PLC | 0.19 | 1.15 | 0.99 |
| LO24.DE | Lotto24 AG | 0.01 | 0.37 | 0.37 |
| PTEC.L | Playtech PLC | 0.38 | 1.31 | 1 |
| SFCA.PA | Societe Francaise de Casinos SA | 0.37 | -0.06 | -0.05 |
| SPO.L | Sportech PLC | 0.96 | 0.31 | 0.17 |
| WEB.L | Webis Holding PLC | 6.99 | -1.38 | -0.2 |
| WMH.L | William Hill PLC | 0.28 | 1.76 | 1.43 |
| WBAI | 500.Com Ltd | 0 | 1.78 | 1.78 |
| Low | High | |
| Unlevered beta | 0.17 | 0.37 |
| Relevered beta | 0.48 | 1.13 |
| Adjusted relevered beta | 0.65 | 1.09 |
BOTB.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 BOTB.L:
cost_of_equity (10.25%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.65) + 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.