GILD.L WACC - Weighted Average Cost of Capital
The WACC of Guild Esports PLC (GILD.L) is 6.9%.
| Range | Selected | |
| Cost of equity | 22.3% - 31.3% | 26.8% |
| Tax rate | 19.0% - 19.0% | 19% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.3% - 7.5% | 6.9% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 3.07 | 3.77 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 22.3% | 31.3% |
| Tax rate | 19.0% | 19.0% |
| Debt/Equity ratio | 6.96 | 6.96 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.3% | 7.5% |
| Selected WACC | 6.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| GILD.L | Guild Esports PLC | 6.96 | 2.87 | 0.43 |
| ATST.L | Alliance Trust PLC | 0.05 | 0.93 | 0.9 |
| FCIT.L | F&C Investment Trust PLC | 0.11 | 0.9 | 0.83 |
| MNKS.L | Monks Investment Trust PLC | 0.1 | 0.84 | 0.78 |
| PCT.L | Polar Capital Technology Trust PLC | 0.01 | 0.57 | 0.56 |
| RCP.L | RIT Capital Partners PLC | 0.13 | 0.65 | 0.59 |
| SMT.L | Scottish Mortgage Investment Trust PLC | 0.14 | 0.69 | 0.62 |
| TEM.L | Templeton Emerging Markets Investment Trust PLC | 0.05 | 0.81 | 0.78 |
| WWH.L | Worldwide Healthcare Trust PLC | 0.05 | 0.46 | 0.45 |
| Low | High | |
| Unlevered beta | 0.6 | 0.75 |
| Relevered beta | 4.09 | 5.13 |
| Adjusted relevered beta | 3.07 | 3.77 |
GILD.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 GILD.L:
cost_of_equity (26.80%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (3.07) + 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.