CATM WACC - Weighted Average Cost of Capital
The WACC of Cardtronics PLC (CATM) is 8.2%.
| Range | Selected | |
| Cost of equity | 8.1% - 11.1% | 9.6% |
| Tax rate | 15.0% - 23.7% | 19.35% |
| Cost of debt | 4.8% - 8.0% | 6.4% |
| WACC | 6.8% - 9.6% | 8.2% |
| Category | Low | High |
| Long-term bond rate | 3.2% | 3.7% |
| Equity market risk premium | 4.2% | 5.2% |
| Adjusted beta | 1.15 | 1.33 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.1% | 11.1% |
| Tax rate | 15.0% | 23.7% |
| Debt/Equity ratio | 0.44 | 0.44 |
| Cost of debt | 4.8% | 8.0% |
| After-tax WACC | 6.8% | 9.6% |
| Selected WACC | 8.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CATM | Cardtronics PLC | 0.44 | 1.87 | 1.4 |
| BNXA.V | Banxa Holdings Inc | 0.28 | 2.5 | 2.06 |
| CASS | Cass Information Systems Inc | 1.26 | 0.6 | 0.3 |
| IIIV | I3 Verticals Inc | 0.03 | 0.41 | 0.4 |
| MGI | MoneyGram International Inc | 0.73 | 0.12 | 0.07 |
| PAGS | PagSeguro Digital Ltd | 0.25 | 0.87 | 0.73 |
| PAYA | Paya Holdings Inc | 0.19 | 0.36 | 0.32 |
| RPAY | Repay Holdings Corp | 1.29 | 0.67 | 0.34 |
| UEPS | Net 1 UEPS Technologies Inc | 0.05 | 1.21 | 1.17 |
| USIO | Usio Inc | 0.02 | 0.28 | 0.28 |
| Low | High | |
| Unlevered beta | 0.33 | 0.53 |
| Relevered beta | 1.22 | 1.49 |
| Adjusted relevered beta | 1.15 | 1.33 |
CATM'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 CATM:
cost_of_equity (9.60%) = risk_free_rate (3.45%) + equity_risk_premium (4.70%) * adjusted_beta (1.15) + 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.