CRW.L
Craneware PLC
Price:  
2,240.00 
GBP
Volume:  
20,068.00
United Kingdom | Health Care Technology
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

CRW.L WACC - Weighted Average Cost of Capital

The WACC of Craneware PLC (CRW.L) is 7.0%.

The Cost of Equity of Craneware PLC (CRW.L) is 6.65%.
The Cost of Debt of Craneware PLC (CRW.L) is 21.40%.

Range Selected
Cost of equity 5.70% - 7.60% 6.65%
Tax rate 20.50% - 26.70% 23.60%
Cost of debt 5.10% - 37.70% 21.40%
WACC 5.6% - 8.3% 7.0%
WACC

CRW.L WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.29 0.37
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.70% 7.60%
Tax rate 20.50% 26.70%
Debt/Equity ratio 0.04 0.04
Cost of debt 5.10% 37.70%
After-tax WACC 5.6% 8.3%
Selected WACC 7.0%

CRW.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 CRW.L:

cost_of_equity (6.65%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.29) + 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.