EGL.L WACC - Weighted Average Cost of Capital
The WACC of Ecofin Global Utilities and Infrastructure Trust PLC (EGL.L) is 9.6%.
| Range | Selected | |
| Cost of equity | 9.2% - 11.4% | 10.3% |
| Tax rate | 4.5% - 6.8% | 5.65% |
| Cost of debt | 4.0% - 4.6% | 4.3% |
| WACC | 8.6% - 10.7% | 9.6% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.87 | 0.92 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.2% | 11.4% |
| Tax rate | 4.5% | 6.8% |
| Debt/Equity ratio | 0.12 | 0.12 |
| Cost of debt | 4.0% | 4.6% |
| After-tax WACC | 8.6% | 10.7% |
| Selected WACC | 9.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| EGL.L | Ecofin Global Utilities and Infrastructure Trust PLC | 0.12 | 3.55 | 3.18 |
| A7A.DE | Finlab AG | 0.15 | 0.83 | 0.73 |
| EVLI.HE | Evli Pankki Oyj | 0.22 | 0.54 | 0.45 |
| GOZDE.IS | Gozde Girisim Sermayesi Yatirim Ortakligi AS | 0.06 | 1.43 | 1.36 |
| HPBK.DE | Heliad Equity Partners GmbH & Co KGaA | 0.24 | 0.88 | 0.72 |
| ISGSY.IS | Is Girisim Sermayesi Yatirim Ortakligi AS | 0 | 0.8 | 0.8 |
| MERC.L | Mercia Asset Management PLC | 0.01 | 1.34 | 1.34 |
| MIGO.L | Miton Global Opportunities PLC | 0.08 | 0.78 | 0.72 |
| NEXTS.PA | Nextstage SCA | 0.08 | 0.29 | 0.27 |
| TITAN.HE | Titanium Oyj | 0.02 | 0.8 | 0.79 |
| YESIL.IS | Yesil Yatirim Holding AS | 0.01 | 1.6 | 1.59 |
| Low | High | |
| Unlevered beta | 0.73 | 0.8 |
| Relevered beta | 0.81 | 0.88 |
| Adjusted relevered beta | 0.87 | 0.92 |
EGL.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 EGL.L:
cost_of_equity (10.30%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.87) + 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.