GATC.L WACC - Weighted Average Cost of Capital
The WACC of Gattaca PLC (GATC.L) is 7.4%.
| Range | Selected | |
| Cost of equity | 6.8% - 8.6% | 7.7% |
| Tax rate | 17.5% - 31.6% | 24.55% |
| Cost of debt | 4.0% - 4.6% | 4.3% |
| WACC | 6.6% - 8.2% | 7.4% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.47 | 0.52 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.8% | 8.6% |
| Tax rate | 17.5% | 31.6% |
| Debt/Equity ratio | 0.08 | 0.08 |
| Cost of debt | 4.0% | 4.6% |
| After-tax WACC | 6.6% | 8.2% |
| Selected WACC | 7.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| GATC.L | Gattaca PLC | 0.08 | 0.36 | 0.34 |
| ALDLS.PA | Dlsi SA | 0.35 | 0.37 | 0.29 |
| BRNL.AS | Brunel International NV | 0.22 | 1.18 | 1.01 |
| EEZY.HE | Eezy Plc | 3.03 | 0.83 | 0.25 |
| EMR.L | Empresaria Group PLC | 2.66 | -0.14 | -0.05 |
| OJM.MI | Openjobmetis SpA Agenzia per il Lavoro | 0.21 | -0.13 | -0.11 |
| RTC.L | RTC Group PLC | 0.22 | 0.16 | 0.14 |
| RWA.L | Robert Walters Plc | 0.59 | -0.1 | -0.07 |
| SDG.PA | Synergie SE | 0.14 | 0.27 | 0.24 |
| WSE.WA | Work Service SA | 2.49 | 1.39 | 0.47 |
| Low | High | |
| Unlevered beta | 0.2 | 0.27 |
| Relevered beta | 0.21 | 0.28 |
| Adjusted relevered beta | 0.47 | 0.52 |
GATC.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 GATC.L:
cost_of_equity (7.70%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.47) + 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.