GDR.L
Genedrive PLC
Price:  
1.49 
GBP
Volume:  
2,117,445.00
United Kingdom | Life Sciences Tools & Services
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GDR.L WACC - Weighted Average Cost of Capital

The WACC of Genedrive PLC (GDR.L) is 7.2%.

The Cost of Equity of Genedrive PLC (GDR.L) is 7.30%.
The Cost of Debt of Genedrive PLC (GDR.L) is 4.30%.

Range Selected
Cost of equity 6.20% - 8.40% 7.30%
Tax rate 15.70% - 18.00% 16.85%
Cost of debt 4.00% - 4.60% 4.30%
WACC 6.1% - 8.3% 7.2%
WACC

GDR.L WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.37 0.49
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.20% 8.40%
Tax rate 15.70% 18.00%
Debt/Equity ratio 0.03 0.03
Cost of debt 4.00% 4.60%
After-tax WACC 6.1% 8.3%
Selected WACC 7.2%

GDR.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 GDR.L:

cost_of_equity (7.30%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.37) + 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.