EXPN.L
Experian PLC
Price:  
3,839.00 
GBP
Volume:  
1,215,356.00
Ireland | Professional Services
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EXPN.L WACC - Weighted Average Cost of Capital

The WACC of Experian PLC (EXPN.L) is 8.4%.

The Cost of Equity of Experian PLC (EXPN.L) is 8.80%.
The Cost of Debt of Experian PLC (EXPN.L) is 4.35%.

Range Selected
Cost of equity 7.00% - 10.60% 8.80%
Tax rate 24.30% - 26.50% 25.40%
Cost of debt 4.00% - 4.70% 4.35%
WACC 6.7% - 10.0% 8.4%
WACC

EXPN.L WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.51 0.81
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.00% 10.60%
Tax rate 24.30% 26.50%
Debt/Equity ratio 0.09 0.09
Cost of debt 4.00% 4.70%
After-tax WACC 6.7% 10.0%
Selected WACC 8.4%

EXPN.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 EXPN.L:

cost_of_equity (8.80%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.51) + 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.