GRP.IR WACC - Weighted Average Cost of Capital

The WACC of Greencoat Renewables PLC (GRP.IR) is 7.6%.

The Cost of Equity of Greencoat Renewables PLC (GRP.IR) is 12.05%.

The Cost of Debt of Greencoat Renewables PLC (GRP.IR) is 5.15%.

	Range	Selected
Cost of equity	9.60% - 14.50%	12.05%
Tax rate	12.50% - 12.50%	12.50%
Cost of debt	4.00% - 6.30%	5.15%
WACC	6.0% - 9.2%	7.6%

WACC

GRP.IR WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	6.0%	7.0%
Adjusted beta	1.16	1.55

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.60%	14.50%

Tax rate	12.50%	12.50%
Debt/Equity ratio	1.41	1.41
Cost of debt	4.00%	6.30%

After-tax WACC	6.0%	9.2%


Selected WACC	7.6%

GRP.IR'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 GRP.IR:

cost_of_equity (12.05%) = risk_free_rate (2.95%) + equity_risk_premium (6.50%) * adjusted_beta (1.16) + 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.