KIBO.L WACC - Weighted Average Cost of Capital
The WACC of Kibo Energy PLC (KIBO.L) is 4.8%.
| Range | Selected | |
| Cost of equity | 5.8% - 7.8% | 6.8% |
| Tax rate | 19.0% - 19.0% | 19% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.6% - 5.1% | 4.8% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.31 | 0.41 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.8% | 7.8% |
| Tax rate | 19.0% | 19.0% |
| Debt/Equity ratio | 2.5 | 2.5 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.6% | 5.1% |
| Selected WACC | 4.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| KIBO.L | Kibo Energy PLC | 2.5 | -0.2 | -0.06 |
| 01C.WA | 01Cyberaton SA | 0.21 | 0.66 | 0.56 |
| 08N.WA | Octava SA | 0.72 | 0.07 | 0.05 |
| GNG.WA | G Energy SA | 0.31 | 0.54 | 0.43 |
| IB.MI | Iniziative Bresciane Inbre SpA | 1.54 | 0.07 | 0.03 |
| ITXT.PA | Intexa SA | 0.01 | -0.04 | -0.04 |
| KNR1L.VS | Kauno Energija AB | 1.06 | -0.66 | -0.36 |
| NATEN.IS | Naturel Yenilenebilir Enerji Ticaret AS | 0.25 | 1.02 | 0.85 |
| PRD.AT | Proodeftiki Technical Co SA | 0.43 | -0.45 | -0.33 |
| Low | High | |
| Unlevered beta | -0.03 | 0.04 |
| Relevered beta | -0.03 | 0.12 |
| Adjusted relevered beta | 0.31 | 0.41 |
KIBO.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 KIBO.L:
cost_of_equity (6.80%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.31) + 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.