CRL.L
Creightons PLC
Price:  
40.00 
GBP
Volume:  
282,421.00
United Kingdom | Personal Products
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CRL.L WACC - Weighted Average Cost of Capital

The WACC of Creightons PLC (CRL.L) is 7.3%.

The Cost of Equity of Creightons PLC (CRL.L) is 7.85%.
The Cost of Debt of Creightons PLC (CRL.L) is 4.35%.

Range Selected
Cost of equity 6.80% - 8.90% 7.85%
Tax rate 10.50% - 12.90% 11.70%
Cost of debt 4.00% - 4.70% 4.35%
WACC 6.4% - 8.2% 7.3%
WACC

CRL.L WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.47 0.56
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.80% 8.90%
Tax rate 10.50% 12.90%
Debt/Equity ratio 0.15 0.15
Cost of debt 4.00% 4.70%
After-tax WACC 6.4% 8.2%
Selected WACC 7.3%

CRL.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 CRL.L:

cost_of_equity (7.85%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.47) + 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.