CAM.L
Camellia PLC
Price:  
5,275.00 
GBP
Volume:  
2,422.00
United Kingdom | Food Products
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CAM.L WACC - Weighted Average Cost of Capital

The WACC of Camellia PLC (CAM.L) is 7.3%.

The Cost of Equity of Camellia PLC (CAM.L) is 7.35%.
The Cost of Debt of Camellia PLC (CAM.L) is 8.70%.

Range Selected
Cost of equity 6.20% - 8.50% 7.35%
Tax rate 19.00% - 19.00% 19.00%
Cost of debt 7.00% - 10.40% 8.70%
WACC 6.1% - 8.5% 7.3%
WACC

CAM.L WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.36 0.51
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.20% 8.50%
Tax rate 19.00% 19.00%
Debt/Equity ratio 0.23 0.23
Cost of debt 7.00% 10.40%
After-tax WACC 6.1% 8.5%
Selected WACC 7.3%

CAM.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 CAM.L:

cost_of_equity (7.35%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.36) + 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.