CAL.L
Capital & Regional PLC
Price:  
62.40 
GBP
Volume:  
86,106.00
United Kingdom | Equity Real Estate Investment Trusts (REITs)
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CAL.L WACC - Weighted Average Cost of Capital

The WACC of Capital & Regional PLC (CAL.L) is 6.1%.

The Cost of Equity of Capital & Regional PLC (CAL.L) is 7.65%.
The Cost of Debt of Capital & Regional PLC (CAL.L) is 5.55%.

Range Selected
Cost of equity 6.80% - 8.50% 7.65%
Tax rate 3.60% - 12.10% 7.85%
Cost of debt 4.00% - 7.10% 5.55%
WACC 5.0% - 7.1% 6.1%
WACC

CAL.L WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.47 0.5
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.80% 8.50%
Tax rate 3.60% 12.10%
Debt/Equity ratio 1.56 1.56
Cost of debt 4.00% 7.10%
After-tax WACC 5.0% 7.1%
Selected WACC 6.1%

CAL.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 CAL.L:

cost_of_equity (7.65%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.47) + 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.