CPC.L WACC - Weighted Average Cost of Capital

The WACC of City Pub Group PLC (CPC.L) is 6.5%.

The Cost of Equity of City Pub Group PLC (CPC.L) is 7.00%.

The Cost of Debt of City Pub Group PLC (CPC.L) is 5.55%.

	Range	Selected
Cost of equity	6.20% - 7.80%	7.00%
Tax rate	21.10% - 31.20%	26.15%
Cost of debt	4.00% - 7.10%	5.55%
WACC	5.7% - 7.3%	6.5%

WACC

CPC.L WACC calculation

Category	Low	High

Long-term bond rate	4.0%	4.5%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.37	0.4

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.20%	7.80%

Tax rate	21.10%	31.20%
Debt/Equity ratio	0.18	0.18
Cost of debt	4.00%	7.10%

After-tax WACC	5.7%	7.3%


Selected WACC	6.5%

CPC.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 CPC.L:

cost_of_equity (7.00%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.37) + 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.