GYG.L
GYG PLC
Price:  
21.00 
GBP
Volume:  
128,228.00
Spain | Commercial Services & Supplies
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GYG.L WACC - Weighted Average Cost of Capital

The WACC of GYG PLC (GYG.L) is 5.6%.

The Cost of Equity of GYG PLC (GYG.L) is 6.85%.
The Cost of Debt of GYG PLC (GYG.L) is 6.45%.

Range Selected
Cost of equity 5.50% - 8.20% 6.85%
Tax rate 24.90% - 33.70% 29.30%
Cost of debt 5.90% - 7.00% 6.45%
WACC 4.9% - 6.3% 5.6%
WACC

GYG.L WACC calculation

Category Low High
Long-term bond rate 2.9% 3.4%
Equity market risk premium 5.3% 6.3%
Adjusted beta 0.47 0.67
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.50% 8.20%
Tax rate 24.90% 33.70%
Debt/Equity ratio 1.1 1.1
Cost of debt 5.90% 7.00%
After-tax WACC 4.9% 6.3%
Selected WACC 5.6%

GYG.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 GYG.L:

cost_of_equity (6.85%) = risk_free_rate (3.15%) + equity_risk_premium (5.80%) * 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.