BVIC.L
Britvic PLC
Price:  
1,313.00 
GBP
Volume:  
11,961,865.00
United Kingdom | Beverages
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BVIC.L WACC - Weighted Average Cost of Capital

The WACC of Britvic PLC (BVIC.L) is 8.5%.

The Cost of Equity of Britvic PLC (BVIC.L) is 9.60%.
The Cost of Debt of Britvic PLC (BVIC.L) is 4.45%.

Range Selected
Cost of equity 8.30% - 10.90% 9.60%
Tax rate 20.50% - 23.20% 21.85%
Cost of debt 4.00% - 4.90% 4.45%
WACC 7.3% - 9.6% 8.5%
WACC

BVIC.L WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.71 0.84
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.30% 10.90%
Tax rate 20.50% 23.20%
Debt/Equity ratio 0.22 0.22
Cost of debt 4.00% 4.90%
After-tax WACC 7.3% 9.6%
Selected WACC 8.5%

BVIC.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 BVIC.L:

cost_of_equity (9.60%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.71) + 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.