FOXT.L
Foxtons Group PLC
Price:  
56.40 
GBP
Volume:  
269,318.00
United Kingdom | Real Estate Management & Development
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FOXT.L WACC - Weighted Average Cost of Capital

The WACC of Foxtons Group PLC (FOXT.L) is 7.5%.

The Cost of Equity of Foxtons Group PLC (FOXT.L) is 8.95%.
The Cost of Debt of Foxtons Group PLC (FOXT.L) is 4.45%.

Range Selected
Cost of equity 7.60% - 10.30% 8.95%
Tax rate 19.00% - 19.00% 19.00%
Cost of debt 4.00% - 4.90% 4.45%
WACC 6.4% - 8.7% 7.5%
WACC

FOXT.L WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.6 0.76
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.60% 10.30%
Tax rate 19.00% 19.00%
Debt/Equity ratio 0.36 0.36
Cost of debt 4.00% 4.90%
After-tax WACC 6.4% 8.7%
Selected WACC 7.5%

FOXT.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 FOXT.L:

cost_of_equity (8.95%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.6) + 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.