CTG.L WACC - Weighted Average Cost of Capital

The WACC of Christie Group plc (CTG.L) is 8.6%.

The Cost of Equity of Christie Group plc (CTG.L) is 6.95%.

The Cost of Debt of Christie Group plc (CTG.L) is 15.80%.

	Range	Selected
Cost of equity	6.20% - 7.70%	6.95%
Tax rate	10.50% - 14.80%	12.65%
Cost of debt	7.60% - 24.00%	15.80%
WACC	6.3% - 10.9%	8.6%

WACC

CTG.L WACC calculation

Category	Low	High

Long-term bond rate	4.0%	4.5%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.36	0.39

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.20%	7.70%

Tax rate	10.50%	14.80%
Debt/Equity ratio	0.33	0.33
Cost of debt	7.60%	24.00%

After-tax WACC	6.3%	10.9%


Selected WACC	8.6%

CTG.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 CTG.L:

cost_of_equity (6.95%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.36) + 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.