CRPR.L WACC - Weighted Average Cost of Capital
The WACC of James Cropper PLC (CRPR.L) is 7.0%.
| Range | Selected | |
| Cost of equity | 9.5% - 14.1% | 11.8% |
| Tax rate | 19.0% - 34.9% | 26.95% |
| Cost of debt | 4.3% - 7.0% | 5.65% |
| WACC | 5.8% - 8.2% | 7.0% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.91 | 1.3 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.5% | 14.1% |
| Tax rate | 19.0% | 34.9% |
| Debt/Equity ratio | 1.64 | 1.64 |
| Cost of debt | 4.3% | 7.0% |
| After-tax WACC | 5.8% | 8.2% |
| Selected WACC | 7.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CRPR.L | James Cropper PLC | 1.64 | 0.64 | 0.28 |
| ALKIM.IS | Alkim Alkali Kimya AS | 0.02 | 0.42 | 0.42 |
| GRG1L.VS | Grigeo AB | 0.06 | 0.36 | 0.34 |
| IBG.MC | Iberpapel Gestion SA | 0.34 | 0.18 | 0.14 |
| METSB.HE | Metsa Board Oyj | 0.45 | 1.24 | 0.93 |
| MNDI.L | Mondi PLC | 0.34 | 1.13 | 0.9 |
| NDT.MI | Neodecortech SpA | 1.08 | 0.32 | 0.18 |
| RROS.ST | Rottneros AB | 0.45 | 0.72 | 0.54 |
| STERV.HE | Stora Enso Oyj | 0.85 | 1.32 | 0.8 |
| UPM.HE | UPM-Kymmene Oyj | 0.3 | 0.98 | 0.8 |
| Low | High | |
| Unlevered beta | 0.39 | 0.64 |
| Relevered beta | 0.87 | 1.45 |
| Adjusted relevered beta | 0.91 | 1.3 |
CRPR.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 CRPR.L:
cost_of_equity (11.80%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.91) + 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.