CCPG.L
CVC Credit Partners European Opportunities Ltd
Price:  
89.40 
GBP
Volume:  
50,090.00
Jersey | N/A
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CCPG.L WACC - Weighted Average Cost of Capital

The WACC of CVC Credit Partners European Opportunities Ltd (CCPG.L) is 8.0%.

The Cost of Equity of CVC Credit Partners European Opportunities Ltd (CCPG.L) is 11.95%.
The Cost of Debt of CVC Credit Partners European Opportunities Ltd (CCPG.L) is 5.00%.

Range Selected
Cost of equity 10.30% - 13.60% 11.95%
Tax rate 19.00% - 19.00% 19.00%
Cost of debt 5.00% - 5.00% 5.00%
WACC 7.2% - 8.8% 8.0%
WACC

CCPG.L WACC calculation

Category Low High
Long-term bond rate 2.9% 3.4%
Equity market risk premium 5.3% 6.3%
Adjusted beta 1.39 1.52
Additional risk adjustments 0.0% 0.5%
Cost of equity 10.30% 13.60%
Tax rate 19.00% 19.00%
Debt/Equity ratio 1 1
Cost of debt 5.00% 5.00%
After-tax WACC 7.2% 8.8%
Selected WACC 8.0%

CCPG.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 CCPG.L:

cost_of_equity (11.95%) = risk_free_rate (3.15%) + equity_risk_premium (5.80%) * adjusted_beta (1.39) + 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.