The WACC of En+ Group PAO (ENPL.L) is 7.9%.
| Range | Selected | |
| Cost of equity | 7.10% - 10.40% | 8.75% |
| Tax rate | 15.80% - 17.60% | 16.70% |
| Cost of debt | 7.10% - 10.80% | 8.95% |
| WACC | 6.4% - 9.5% | 7.9% |
| Category | Low | High |
| Long-term bond rate | 0.8% | 1.3% |
| Equity market risk premium | 5.3% | 6.3% |
| Adjusted beta | 1.19 | 1.36 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.10% | 10.40% |
| Tax rate | 15.80% | 17.60% |
| Debt/Equity ratio | 1.59 | 1.59 |
| Cost of debt | 7.10% | 10.80% |
| After-tax WACC | 6.4% | 9.5% |
| Selected WACC | 7.9% | |
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 ENPL.L:
cost_of_equity (8.75%) = risk_free_rate (1.05%) + equity_risk_premium (5.80%) * adjusted_beta (1.19) + 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.