CCEP
Coca-Cola European Partners PLC
Price:  
91.79 
USD
Volume:  
6,680,736.00
United Kingdom | Beverages
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CCEP WACC - Weighted Average Cost of Capital

The WACC of Coca-Cola European Partners PLC (CCEP) is 6.1%.

The Cost of Equity of Coca-Cola European Partners PLC (CCEP) is 7.00%.
The Cost of Debt of Coca-Cola European Partners PLC (CCEP) is 4.40%.

Range Selected
Cost of equity 6.10% - 7.90% 7.00%
Tax rate 24.90% - 26.60% 25.75%
Cost of debt 4.00% - 4.80% 4.40%
WACC 5.4% - 6.9% 6.1%
WACC

CCEP WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.49 0.55
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.10% 7.90%
Tax rate 24.90% 26.60%
Debt/Equity ratio 0.3 0.3
Cost of debt 4.00% 4.80%
After-tax WACC 5.4% 6.9%
Selected WACC 6.1%

CCEP'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 CCEP:

cost_of_equity (7.00%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.49) + 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.