CNKS.L WACC - Weighted Average Cost of Capital
The WACC of Cenkos Securities PLC (CNKS.L) is 6.6%.
| Range | Selected | |
| Cost of equity | 6.1% - 7.9% | 7% |
| Tax rate | 18.8% - 21.9% | 20.35% |
| Cost of debt | 7.0% - 7.0% | 7% |
| WACC | 6.0% - 7.2% | 6.6% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.35 | 0.41 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.1% | 7.9% |
| Tax rate | 18.8% | 21.9% |
| Debt/Equity ratio | 0.35 | 0.35 |
| Cost of debt | 7.0% | 7.0% |
| After-tax WACC | 6.0% | 7.2% |
| Selected WACC | 6.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CNKS.L | Cenkos Securities PLC | 0.35 | 0.98 | 0.77 |
| AGFX.L | Argentex Group PLC | 3.58 | -0.77 | -0.2 |
| CRS.WA | Copernicus Securities SA | 0.1 | -0.1 | -0.09 |
| FCAP.L | Finncap Group PLC | 0.54 | 0.75 | 0.53 |
| IPE.WA | Ipopema Securities SA | 2.21 | 0.72 | 0.26 |
| LET.WA | Letus Capital SA | 0.02 | -0.56 | -0.56 |
| MANG.ST | Mangold AB | 0.96 | 0.05 | 0.03 |
| PRO.MI | Banca Profilo SpA | 6.97 | 0.54 | 0.08 |
| VG8.DE | Varengold Bank AG | 0.38 | 0.15 | 0.11 |
| WCW.L | Walker Crips Group PLC | 0.45 | 0.03 | 0.02 |
| Low | High | |
| Unlevered beta | 0.03 | 0.09 |
| Relevered beta | 0.03 | 0.12 |
| Adjusted relevered beta | 0.35 | 0.41 |
CNKS.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 CNKS.L:
cost_of_equity (7.00%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.35) + 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.