CAPC.L WACC - Weighted Average Cost of Capital

The WACC of Capital & Counties Properties PLC (CAPC.L) is 9.1%.

The Cost of Equity of Capital & Counties Properties PLC (CAPC.L) is 8.25%.

The Cost of Debt of Capital & Counties Properties PLC (CAPC.L) is 10.60%.

	Range	Selected
Cost of equity	6.90% - 9.60%	8.25%
Tax rate	1.60% - 2.20%	1.90%
Cost of debt	4.00% - 17.20%	10.60%
WACC	5.7% - 12.5%	9.1%

WACC

CAPC.L WACC calculation

Category	Low	High

Long-term bond rate	4.4%	4.9%
Equity market risk premium	6.4%	7.4%
Adjusted beta	0.39	0.57

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.90%	9.60%

Tax rate	1.60%	2.20%
Debt/Equity ratio	0.67	0.67
Cost of debt	4.00%	17.20%

After-tax WACC	5.7%	12.5%


Selected WACC	9.1%

CAPC.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 CAPC.L:

cost_of_equity (8.25%) = risk_free_rate (4.65%) + equity_risk_premium (6.90%) * adjusted_beta (0.39) + 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.