RBGP.L WACC - Weighted Average Cost of Capital

The WACC of RBG Holdings PLC (RBGP.L) is 5.1%.

The Cost of Equity of RBG Holdings PLC (RBGP.L) is 19.05%.

The Cost of Debt of RBG Holdings PLC (RBGP.L) is 5.80%.

	Range	Selected
Cost of equity	12.70% - 25.40%	19.05%
Tax rate	16.80% - 20.40%	18.60%
Cost of debt	4.60% - 7.00%	5.80%
WACC	4.1% - 6.2%	5.1%

WACC

RBGP.L WACC calculation

Category	Low	High

Long-term bond rate	4.0%	4.5%
Equity market risk premium	6.0%	7.0%
Adjusted beta	1.46	2.92

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.70%	25.40%

Tax rate	16.80%	20.40%
Debt/Equity ratio	32.67	32.67
Cost of debt	4.60%	7.00%

After-tax WACC	4.1%	6.2%


Selected WACC	5.1%

RBGP.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 RBGP.L:

cost_of_equity (19.05%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (1.46) + 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.