INF.L
Informa PLC
Price:  
764.40 
GBP
Volume:  
2,939,087.00
United Kingdom | Media
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INF.L WACC - Weighted Average Cost of Capital

The WACC of Informa PLC (INF.L) is 7.3%.

The Cost of Equity of Informa PLC (INF.L) is 8.40%.
The Cost of Debt of Informa PLC (INF.L) is 4.50%.

Range Selected
Cost of equity 7.20% - 9.60% 8.40%
Tax rate 9.80% - 12.40% 11.10%
Cost of debt 4.10% - 4.90% 4.50%
WACC 6.3% - 8.2% 7.3%
WACC

INF.L WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.54 0.66
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.20% 9.60%
Tax rate 9.80% 12.40%
Debt/Equity ratio 0.35 0.35
Cost of debt 4.10% 4.90%
After-tax WACC 6.3% 8.2%
Selected WACC 7.3%

INF.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 INF.L:

cost_of_equity (8.40%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.54) + 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.