RBN.L
Robinson PLC
Price:  
130.00 
GBP
Volume:  
1,831.00
United Kingdom | Containers & Packaging
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RBN.L WACC - Weighted Average Cost of Capital

The WACC of Robinson PLC (RBN.L) is 9.4%.

The Cost of Equity of Robinson PLC (RBN.L) is 11.45%.
The Cost of Debt of Robinson PLC (RBN.L) is 5.40%.

Range Selected
Cost of equity 10.00% - 12.90% 11.45%
Tax rate 17.20% - 21.40% 19.30%
Cost of debt 5.30% - 5.50% 5.40%
WACC 8.4% - 10.5% 9.4%
WACC

RBN.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 1.14
Additional risk adjustments 0.0% 0.5%
Cost of equity 10.00% 12.90%
Tax rate 17.20% 21.40%
Debt/Equity ratio 0.4 0.4
Cost of debt 5.30% 5.50%
After-tax WACC 8.4% 10.5%
Selected WACC 9.4%

RBN.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 RBN.L:

cost_of_equity (11.45%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (1) + 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.