CRU.L WACC - Weighted Average Cost of Capital
The WACC of Coral Products PLC (CRU.L) is 7.6%.
| Range | Selected | |
| Cost of equity | 7.7% - 11.3% | 9.5% |
| Tax rate | 12.0% - 20.2% | 16.1% |
| Cost of debt | 7.0% - 8.3% | 7.65% |
| WACC | 6.8% - 8.5% | 7.6% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.62 | 0.91 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.7% | 11.3% |
| Tax rate | 12.0% | 20.2% |
| Debt/Equity ratio | 1.56 | 1.56 |
| Cost of debt | 7.0% | 8.3% |
| After-tax WACC | 6.8% | 8.5% |
| Selected WACC | 7.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CRU.L | Coral Products PLC | 1.56 | -0.47 | -0.21 |
| AUGR.PA | Augros Cosmetic Packaging SA | 0.37 | -0.13 | -0.1 |
| BNTAS.IS | Bantas Bandirma Ambalaj Sanayi ve Ticaret AS | 0.06 | 0.89 | 0.85 |
| PAIR.AT | E Pairis SA | 2.28 | 1.12 | 0.39 |
| PLX.WA | Przetworstwo Tworzyw Sztucznych Plast-Box SA | 0.57 | 0.34 | 0.23 |
| PSB.PA | PSB Industries SA | 0.77 | 0.81 | 0.5 |
| RES.BR | Resilux NV | 0.05 | 0.44 | 0.43 |
| SBT.PA | Oeneo SA | 0.17 | 0.13 | 0.12 |
| SUW.WA | Suwary SA w Pabianicach | 0.27 | -0.16 | -0.13 |
| ZV.MI | Zignago Vetro SpA | 0.34 | 0.48 | 0.37 |
| Low | High | |
| Unlevered beta | 0.19 | 0.38 |
| Relevered beta | 0.43 | 0.87 |
| Adjusted relevered beta | 0.62 | 0.91 |
CRU.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 CRU.L:
cost_of_equity (9.50%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.62) + 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.