LIFS.L
LifeSafe Holdings PLC
Price:  
7.00 
GBP
Volume:  
3,000.00
United Kingdom | Commercial Services & Supplies
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LIFS.L WACC - Weighted Average Cost of Capital

The WACC of LifeSafe Holdings PLC (LIFS.L) is 11.8%.

The Cost of Equity of LifeSafe Holdings PLC (LIFS.L) is 10.80%.
The Cost of Debt of LifeSafe Holdings PLC (LIFS.L) is 49.70%.

Range Selected
Cost of equity 9.80% - 11.80% 10.80%
Tax rate 2.90% - 4.60% 3.75%
Cost of debt 7.00% - 92.40% 49.70%
WACC 9.7% - 13.8% 11.8%
WACC

LIFS.L WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.97 0.97
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.80% 11.80%
Tax rate 2.90% 4.60%
Debt/Equity ratio 0.03 0.03
Cost of debt 7.00% 92.40%
After-tax WACC 9.7% 13.8%
Selected WACC 11.8%

LIFS.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 LIFS.L:

cost_of_equity (10.80%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.97) + 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.