K3C.L WACC - Weighted Average Cost of Capital
The WACC of K3 Capital Group PLC (K3C.L) is 10.5%.
| Range | Selected | |
| Cost of equity | 8.4% - 13.0% | 10.7% |
| Tax rate | 18.8% - 21.3% | 20.05% |
| Cost of debt | 4.6% - 4.6% | 4.6% |
| WACC | 8.3% - 12.8% | 10.5% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.73 | 1.14 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.4% | 13.0% |
| Tax rate | 18.8% | 21.3% |
| Debt/Equity ratio | 0.02 | 0.02 |
| Cost of debt | 4.6% | 4.6% |
| After-tax WACC | 8.3% | 12.8% |
| Selected WACC | 10.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| K3C.L | K3 Capital Group PLC | 0.02 | 1.85 | 1.82 |
| AFM.L | Alpha Financial Markets Consulting PLC | 0 | 1.52 | 1.52 |
| ALNLF.PA | Neolife SA | 0.21 | 0.49 | 0.42 |
| CAPAC.ST | Capacent Holding AB (publ) | 0.04 | 1.3 | 1.26 |
| ELIX.L | Elixirr International PLC | 0.01 | 1.64 | 1.62 |
| IDEAS.IS | Idealist Danismanlik AS | 0 | 0.7 | 0.7 |
| JTC.L | Jtc PLC | 0.21 | 1.35 | 1.15 |
| KEYS.L | Keystone Law Group PLC | 0.01 | 0.12 | 0.12 |
| RBGP.L | RBG Holdings PLC | 32.67 | 1.6 | 0.06 |
| SAG.L | Science Group PLC | 0.08 | 0.22 | 0.2 |
| Low | High | |
| Unlevered beta | 0.59 | 1.19 |
| Relevered beta | 0.6 | 1.21 |
| Adjusted relevered beta | 0.73 | 1.14 |
K3C.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 K3C.L:
cost_of_equity (10.70%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.73) + 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.