LOOP.L WACC - Weighted Average Cost of Capital

The WACC of LoopUp Group PLC (LOOP.L) is 5.3%.

The Cost of Equity of LoopUp Group PLC (LOOP.L) is 12.70%.

The Cost of Debt of LoopUp Group PLC (LOOP.L) is 5.50%.

	Range	Selected
Cost of equity	9.70% - 15.70%	12.70%
Tax rate	18.00% - 23.00%	20.50%
Cost of debt	4.00% - 7.00%	5.50%
WACC	4.0% - 6.5%	5.3%

WACC

LOOP.L WACC calculation

Category	Low	High

Long-term bond rate	4.0%	4.5%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.95	1.53

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.70%	15.70%

Tax rate	18.00%	23.00%
Debt/Equity ratio	8.09	8.09
Cost of debt	4.00%	7.00%

After-tax WACC	4.0%	6.5%


Selected WACC	5.3%

LOOP.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 LOOP.L:

cost_of_equity (12.70%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.95) + 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.