The WACC of Brickability Group PLC (BRCK.L) is 8.2%.
Range | Selected | |
Cost of equity | 7.6% - 11.7% | 9.65% |
Tax rate | 22.2% - 25.6% | 23.9% |
Cost of debt | 5.4% - 7.1% | 6.25% |
WACC | 6.6% - 9.7% | 8.2% |
Category | Low | High |
Long-term bond rate | 4.0% | 4.5% |
Equity market risk premium | 6.0% | 7.0% |
Adjusted beta | 0.61 | 0.96 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 7.6% | 11.7% |
Tax rate | 22.2% | 25.6% |
Debt/Equity ratio | 0.45 | 0.45 |
Cost of debt | 5.4% | 7.1% |
After-tax WACC | 6.6% | 9.7% |
Selected WACC | 8.2% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
BRCK.L | Brickability Group PLC | 0.45 | 0.89 | 0.66 |
AKCNS.IS | Akcansa Cimento Sanayi ve Ticaret AS | 0.18 | 1.04 | 0.92 |
BTCIM.IS | Baticim Bati Anadolu Cimento Sanayii AS | 0.68 | 1.17 | 0.77 |
BUCIM.IS | Bursa Cimento Fabrikasi AS | 0.05 | 1.22 | 1.18 |
CIMSA.IS | Cimsa Cimento Sanayi ve Ticaret AS | 0.44 | 1.03 | 0.77 |
HH.CO | H+H International A/S | 0.52 | 0.29 | 0.21 |
MATHIO.AT | Mathios Refractory SA | 1.63 | 0.67 | 0.3 |
RAT.VI | Rath AG | 1.28 | 0.1 | 0.05 |
RCA.WA | Rocca SA | 0.02 | 0.32 | 0.32 |
RPC.WA | Zaklady Magnezytowe Ropczyce SA | 0.63 | 0.02 | 0.01 |
Low | High | |
Unlevered beta | 0.31 | 0.71 |
Relevered beta | 0.42 | 0.94 |
Adjusted relevered beta | 0.61 | 0.96 |
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 BRCK.L:
cost_of_equity (9.65%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.61) + 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.