EYE.L WACC - Weighted Average Cost of Capital
The WACC of Eagle Eye Solutions Group PLC (EYE.L) is 6.3%.
| Range | Selected | |
| Cost of equity | 5.0% - 7.5% | 6.25% |
| Tax rate | 19.0% - 19.0% | 19% |
| Cost of debt | 4.6% - 12.6% | 8.6% |
| WACC | 5.0% - 7.6% | 6.3% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0 | 0.22 |
| Additional risk adjustments | 1.0% | 1.5% |
| Cost of equity | 5.0% | 7.5% |
| Tax rate | 19.0% | 19.0% |
| Debt/Equity ratio | 0.02 | 0.02 |
| Cost of debt | 4.6% | 12.6% |
| After-tax WACC | 5.0% | 7.6% |
| Selected WACC | 6.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| EYE.L | Eagle Eye Solutions Group PLC | 0.02 | -0.78 | -0.77 |
| ADYEN.AS | Adyen NV | 0 | 1.84 | 1.84 |
| BPX.WA | BPX SA | 0.02 | -1.08 | -1.06 |
| DHH.MI | DHH SpA | 0.16 | 0.13 | 0.12 |
| FNX.L | Fonix Mobile PLC | 0 | -0.3 | -0.3 |
| KEYW.BR | Keyware Technologies NV | 0.04 | -0.29 | -0.28 |
| PCIP.L | PCI- PAL PLC | 0 | 0.02 | 0.02 |
| SCGL.L | Sealand Capital Galaxy Ltd | 0.01 | -0.76 | -0.75 |
| SDS.ST | Seamless Distribution Systems AB | 1.88 | 1.22 | 0.48 |
| ZIGN.ST | ZignSec AB (publ) | 0.06 | -0.85 | -0.81 |
| Low | High | |
| Unlevered beta | -0.48 | -0.16 |
| Relevered beta | -0.49 | -0.16 |
| Adjusted relevered beta | 0 | 0.22 |
EYE.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 EYE.L:
cost_of_equity (6.25%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0) + risk_adjustments (1.25%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.