EPWN.L
Epwin Group PLC
Price:  
95.50 
GBP
Volume:  
63,895.00
United Kingdom | Building Products
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EPWN.L WACC - Weighted Average Cost of Capital

The WACC of Epwin Group PLC (EPWN.L) is 7.0%.

The Cost of Equity of Epwin Group PLC (EPWN.L) is 10.10%.
The Cost of Debt of Epwin Group PLC (EPWN.L) is 4.80%.

Range Selected
Cost of equity 7.50% - 12.70% 10.10%
Tax rate 26.50% - 29.50% 28.00%
Cost of debt 4.60% - 5.00% 4.80%
WACC 5.6% - 8.5% 7.0%
WACC

EPWN.L WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.58 1.11
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.50% 12.70%
Tax rate 26.50% 29.50%
Debt/Equity ratio 0.86 0.86
Cost of debt 4.60% 5.00%
After-tax WACC 5.6% 8.5%
Selected WACC 7.0%

EPWN.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 EPWN.L:

cost_of_equity (10.10%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.58) + 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.