PAGE.L WACC - Weighted Average Cost of Capital
The WACC of Pagegroup PLC (PAGE.L) is 8.1%.
| Range | Selected | |
| Cost of equity | 7.8% - 10.2% | 9% |
| Tax rate | 32.2% - 37.5% | 34.85% |
| Cost of debt | 4.0% - 4.6% | 4.3% |
| WACC | 7.1% - 9.1% | 8.1% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.63 | 0.74 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.8% | 10.2% |
| Tax rate | 32.2% | 37.5% |
| Debt/Equity ratio | 0.16 | 0.16 |
| Cost of debt | 4.0% | 4.6% |
| After-tax WACC | 7.1% | 9.1% |
| Selected WACC | 8.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| PAGE.L | Pagegroup PLC | 0.16 | 1.55 | 1.4 |
| BRNL.AS | Brunel International NV | 0.21 | 1.3 | 1.14 |
| CEN.PA | Groupe Crit SA | 0.2 | 0.55 | 0.49 |
| GATC.L | Gattaca PLC | 0.08 | 0.44 | 0.41 |
| IPEL.L | Impellam Group PLC | 0.24 | 0.47 | 0.41 |
| OJM.MI | Openjobmetis SpA Agenzia per il Lavoro | 0.21 | -0.13 | -0.11 |
| RWA.L | Robert Walters Plc | 0.72 | 0.11 | 0.08 |
| SDG.PA | Synergie SE | 0.14 | 0.16 | 0.15 |
| STAF.L | Staffline Group PLC | 0.18 | 0.73 | 0.65 |
| STEM.L | SThree PLC | 0.13 | 1.08 | 1 |
| Low | High | |
| Unlevered beta | 0.41 | 0.56 |
| Relevered beta | 0.45 | 0.61 |
| Adjusted relevered beta | 0.63 | 0.74 |
PAGE.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 PAGE.L:
cost_of_equity (9.00%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.63) + 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.