CNIC.L
CentralNic Group Plc
Price:  
119.8 
GBP
Volume:  
273,303
United Kingdom | IT Services

CNIC.L WACC - Weighted Average Cost of Capital

The WACC of CentralNic Group Plc (CNIC.L) is 8.0%.

The Cost of Equity of CentralNic Group Plc (CNIC.L) is 9.2%.
The Cost of Debt of CentralNic Group Plc (CNIC.L) is 6.2%.

RangeSelected
Cost of equity7.4% - 11.0%9.2%
Tax rate19.0% - 19.0%19%
Cost of debt6.0% - 6.4%6.2%
WACC6.7% - 9.3%8.0%
WACC

CNIC.L WACC calculation

CategoryLowHigh
Long-term bond rate4.4%4.9%
Equity market risk premium6.4%7.4%
Adjusted beta0.460.75
Additional risk adjustments0.0%0.5%
Cost of equity7.4%11.0%
Tax rate19.0%19.0%
Debt/Equity ratio
0.420.42
Cost of debt6.0%6.4%
After-tax WACC6.7%9.3%
Selected WACC8.0%

CNIC.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 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.