LBTYA
Liberty Global PLC
Price:  
9.64 
USD
Volume:  
5,127,070.00
United Kingdom | Diversified Telecommunication Services
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LBTYA WACC - Weighted Average Cost of Capital

The WACC of Liberty Global PLC (LBTYA) is 11.6%.

The Cost of Equity of Liberty Global PLC (LBTYA) is 6.95%.
The Cost of Debt of Liberty Global PLC (LBTYA) is 14.60%.

Range Selected
Cost of equity 5.80% - 8.10% 6.95%
Tax rate 5.10% - 9.80% 7.45%
Cost of debt 5.30% - 23.90% 14.60%
WACC 5.3% - 17.9% 11.6%
WACC

LBTYA WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.42 0.58
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.80% 8.10%
Tax rate 5.10% 9.80%
Debt/Equity ratio 2.72 2.72
Cost of debt 5.30% 23.90%
After-tax WACC 5.3% 17.9%
Selected WACC 11.6%

LBTYA'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 LBTYA:

cost_of_equity (6.95%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.42) + 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.