CMB.L WACC - Weighted Average Cost of Capital
The WACC of Cambria Africa PLC (CMB.L) is 7.5%.
| Range | Selected | |
| Cost of equity | 7.8% - 11.6% | 9.7% |
| Tax rate | 19.8% - 29.2% | 24.5% |
| Cost of debt | 7.0% - 7.1% | 7.05% |
| WACC | 6.7% - 8.3% | 7.5% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.64 | 0.95 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.8% | 11.6% |
| Tax rate | 19.8% | 29.2% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 7.0% | 7.1% |
| After-tax WACC | 6.7% | 8.3% |
| Selected WACC | 7.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CMB.L | Cambria Africa PLC | 0.96 | -0.77 | -0.45 |
| AMB.MI | Ambromobiliare SpA | 0.24 | 0.18 | 0.15 |
| AMUN.PA | Amundi SA | 1.32 | 1.36 | 0.69 |
| BELU.BR | Beluga NV | 0.08 | -0.24 | -0.23 |
| CNLCAP.AT | CNL Capital EKES AIFM | 0.86 | 0.18 | 0.11 |
| GRNYO.IS | Garanti Yatirim Ortakligi AS | 0.01 | 0.69 | 0.68 |
| MAFL.L | Mineral & Financial Investments Ltd | 0 | 0.18 | 0.18 |
| MWT.WA | M.W. Trade SA | 0.06 | 0.35 | 0.33 |
| NEWN.SW | New Value AG | 0.19 | 1.15 | 1.01 |
| QRS.WA | Quercus Towarzystwo Funduszy Inwestycyjnych SA | 0.01 | 0.48 | 0.48 |
| SGF.DE | SGT German Private Equity GmbH & Co KGaA | 0.15 | 0.68 | 0.61 |
| Low | High | |
| Unlevered beta | 0.18 | 0.48 |
| Relevered beta | 0.46 | 0.93 |
| Adjusted relevered beta | 0.64 | 0.95 |
CMB.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 CMB.L:
cost_of_equity (9.70%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.64) + 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.