CEPS.L WACC - Weighted Average Cost of Capital
The WACC of Ceps PLC (CEPS.L) is 8.7%.
| Range | Selected | |
| Cost of equity | 14.7% - 21.0% | 17.85% |
| Tax rate | 20.3% - 22.3% | 21.3% |
| Cost of debt | 5.7% - 7.0% | 6.35% |
| WACC | 7.5% - 9.9% | 8.7% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 1.79 | 2.3 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 14.7% | 21.0% |
| Tax rate | 20.3% | 22.3% |
| Debt/Equity ratio | 2.49 | 2.49 |
| Cost of debt | 5.7% | 7.0% |
| After-tax WACC | 7.5% | 9.9% |
| Selected WACC | 8.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CEPS.L | Ceps PLC | 2.36 | -0.29 | -0.1 |
| ALARK.IS | Alarko Holding AS | 0.02 | 1.17 | 1.15 |
| BO.MI | Borgosesia SpA | 4.21 | 0.22 | 0.05 |
| ECZYT.IS | Eczacibasi Yatirim Holding Ortakligi AS | 0 | 1 | 1 |
| IHLAS.IS | Ihlas Holding AS | 0.58 | 1.4 | 0.96 |
| INTRK.AT | Intracom Holdings SA | 0.2 | 1.37 | 1.18 |
| IUR.DE | Kap AG | 1 | 0.7 | 0.39 |
| LIFCO B.ST | Lifco AB (publ) | 0.06 | 1.13 | 1.08 |
| MZHLD.IS | Mazhar Zorlu Holding AS | 0.01 | 0.98 | 0.98 |
| TOMA.PR | Toma as | 0.26 | -0.09 | -0.08 |
| Low | High | |
| Unlevered beta | 0.73 | 0.99 |
| Relevered beta | 2.18 | 2.94 |
| Adjusted relevered beta | 1.79 | 2.3 |
CEPS.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 CEPS.L:
cost_of_equity (17.85%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (1.79) + 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.