FOUR.L WACC - Weighted Average Cost of Capital

The WACC of 4imprint Group PLC (FOUR.L) is 9.2%.

The Cost of Equity of 4imprint Group PLC (FOUR.L) is 9.20%.

The Cost of Debt of 4imprint Group PLC (FOUR.L) is 4.30%.

	Range	Selected
Cost of equity	7.90% - 10.50%	9.20%
Tax rate	23.80% - 24.50%	24.15%
Cost of debt	4.00% - 4.60%	4.30%
WACC	7.9% - 10.5%	9.2%

WACC

FOUR.L WACC calculation

Category	Low	High

Long-term bond rate	4.0%	4.5%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.66	0.79

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.90%	10.50%

Tax rate	23.80%	24.50%
Debt/Equity ratio	0.01	0.01
Cost of debt	4.00%	4.60%

After-tax WACC	7.9%	10.5%


Selected WACC	9.2%

FOUR.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 FOUR.L:

cost_of_equity (9.20%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.66) + 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.