CLON.L WACC - Weighted Average Cost of Capital
The WACC of Clontarf Energy PLC (CLON.L) is 6.1%.
| Range | Selected | |
| Cost of equity | 6.7% - 9.5% | 8.1% |
| Tax rate | 19.0% - 19.0% | 19% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.4% - 6.8% | 6.1% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.46 | 0.65 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.7% | 9.5% |
| Tax rate | 19.0% | 19.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.4% | 6.8% |
| Selected WACC | 6.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CLON.L | Clontarf Energy PLC | 0.97 | -0.61 | -0.34 |
| ATLA DKK.CO | Atlantic Petroleum P/F | 7.94 | 1.27 | 0.17 |
| BOIL.L | Baron Oil PLC | 0 | -1.33 | -1.33 |
| CORO.L | Coro Energy Plc | 4.27 | -0.25 | -0.06 |
| EDR.L | Egdon Resources PLC | 0.04 | 1.04 | 1 |
| EOG.L | Europa Oil & Gas (Holdings) PLC | 0 | 0.8 | 0.8 |
| MLSEQ.PA | Sequa Petroleum NV | 99.85 | 0.9 | 0.01 |
| PXEN.L | Prospex Energy PLC | 0.01 | 0.23 | 0.23 |
| TOM.L | TomCo Energy PLC | 0.26 | 0.41 | 0.34 |
| TRP.L | Tower Resources PLC | 0 | -1.25 | -1.25 |
| ZOL.L | Zoltav Resources Inc | 1.03 | 0.48 | 0.26 |
| Low | High | |
| Unlevered beta | 0.01 | 0.23 |
| Relevered beta | 0.19 | 0.48 |
| Adjusted relevered beta | 0.46 | 0.65 |
CLON.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 CLON.L:
cost_of_equity (8.10%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.46) + 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.