CASP.L WACC - Weighted Average Cost of Capital
The WACC of Caspian Sunrise PLC (CASP.L) is 9.9%.
| Range | Selected | |
| Cost of equity | 7.7% - 13.0% | 10.35% |
| Tax rate | 19.0% - 19.0% | 19% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.4% - 12.3% | 9.9% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.62 | 1.15 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.7% | 13.0% |
| Tax rate | 19.0% | 19.0% |
| Debt/Equity ratio | 0.08 | 0.08 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.4% | 12.3% |
| Selected WACC | 9.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CASP.L | Caspian Sunrise PLC | 0.08 | 0.52 | 0.48 |
| BPC.L | Bahamas Petroleum Company PLC | 0.01 | 1.67 | 1.66 |
| CHAR.L | Chariot Oil and Gas Ltd | 0.06 | 1.14 | 1.09 |
| JOG.L | Jersey Oil and Gas PLC | 0 | 1.61 | 1.61 |
| P8ET.IR | Petroneft Resources PLC | 1.16 | -0.68 | -0.35 |
| PMG.L | Parkmead Group PLC | 0.08 | 1.31 | 1.23 |
| RKH.L | Rockhopper Exploration PLC | 0 | 1.49 | 1.49 |
| SEY.L | Sterling Energy PLC | 0.02 | 0.3 | 0.29 |
| UOG.L | United Oil & Gas PLC | 0.86 | 0.27 | 0.16 |
| WEN.L | Wentworth Resources PLC | 0 | -0.09 | -0.09 |
| Low | High | |
| Unlevered beta | 0.41 | 1.15 |
| Relevered beta | 0.43 | 1.22 |
| Adjusted relevered beta | 0.62 | 1.15 |
CASP.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 CASP.L:
cost_of_equity (10.35%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.62) + 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.