The WACC of CentralNic Group Plc (CNIC.L) is 8.0%.
Range | Selected | |
Cost of equity | 7.4% - 11.0% | 9.2% |
Tax rate | 19.0% - 19.0% | 19% |
Cost of debt | 6.0% - 6.4% | 6.2% |
WACC | 6.7% - 9.3% | 8.0% |
Category | Low | High |
Long-term bond rate | 4.4% | 4.9% |
Equity market risk premium | 6.4% | 7.4% |
Adjusted beta | 0.46 | 0.75 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 7.4% | 11.0% |
Tax rate | 19.0% | 19.0% |
Debt/Equity ratio | 0.42 | 0.42 |
Cost of debt | 6.0% | 6.4% |
After-tax WACC | 6.7% | 9.3% |
Selected WACC | 8.0% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
CNIC.L | CentralNic Group Plc | 0.42 | 0.66 | 0.49 |
4IG.BD | 4iG Nyrt | 1.68 | 1.04 | 0.44 |
ALNXT.PA | Nextedia SA | 0.37 | 0.43 | 0.33 |
ASKN.DE | Asknet Solutions AG | 3.4 | 0.81 | 0.22 |
BEST.MI | Be Shaping the Future SpA | 0.16 | 0.74 | 0.65 |
BINERO.ST | Binero Group AB (publ) | 0.1 | 0.35 | 0.32 |
BKS.L | Beeks Financial Cloud Group PLC | 0.02 | 1.54 | 1.51 |
FRAM B.ST | Fram Skandinavien AB (publ) | 0 | 0.55 | 0.55 |
PRM.MI | PRISMI SpA | 2.6 | -0.05 | -0.02 |
TIE.AS | TIE Kinetix NV | 0.01 | 1.07 | 1.06 |
Low | High | |
Unlevered beta | 0.4 | 0.52 |
Relevered beta | 0.19 | 0.63 |
Adjusted relevered beta | 0.46 | 0.75 |
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 CNIC.L:
cost_of_equity (9.20%) = risk_free_rate (4.65%) + equity_risk_premium (6.90%) * 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.