CWK.L WACC - Weighted Average Cost of Capital
The WACC of Cranswick PLC (CWK.L) is 8.1%.
| Range | Selected | |
| Cost of equity | 7.2% - 9.3% | 8.25% |
| Tax rate | 20.3% - 22.6% | 21.45% |
| Cost of debt | 4.6% - 5.7% | 5.15% |
| WACC | 7.1% - 9.1% | 8.1% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.54 | 0.62 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.2% | 9.3% |
| Tax rate | 20.3% | 22.6% |
| Debt/Equity ratio | 0.04 | 0.04 |
| Cost of debt | 4.6% | 5.7% |
| After-tax WACC | 7.1% | 9.1% |
| Selected WACC | 8.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CWK.L | Cranswick PLC | 0.06 | 0.62 | 0.59 |
| AGR.VI | Agrana Beteiligungs AG | 0.92 | 0.41 | 0.24 |
| ATRAV.HE | Atria Oyj | 0.78 | 0.14 | 0.08 |
| AUSS.OL | Austevoll Seafood ASA | 0.8 | 0.73 | 0.44 |
| BAKK.L | Bakkavor Group Plc | 0.26 | 0.48 | 0.4 |
| GNC.L | Greencore Group PLC | 0.27 | 0.74 | 0.61 |
| HKSAV.HE | HKScan Oyj | 5.38 | -0.04 | -0.01 |
| LSG.OL | Leroy Seafood Group ASA | 0.47 | 0.84 | 0.61 |
| MHPC.L | Mhp Se | 3.34 | 1.29 | 0.35 |
| SCHO.CO | Schouw & Co A/S | 0.44 | 0.07 | 0.06 |
| Low | High | |
| Unlevered beta | 0.31 | 0.42 |
| Relevered beta | 0.31 | 0.43 |
| Adjusted relevered beta | 0.54 | 0.62 |
CWK.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 CWK.L:
cost_of_equity (8.25%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.54) + 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.