RDT.L WACC - Weighted Average Cost of Capital
The WACC of Rosslyn Data Technologies PLC (RDT.L) is 6.7%.
| Range | Selected | |
| Cost of equity | 5.7% - 7.9% | 6.8% |
| Tax rate | 13.6% - 16.5% | 15.05% |
| Cost of debt | 7.0% - 7.0% | 7% |
| WACC | 5.8% - 7.7% | 6.7% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.29 | 0.42 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.7% | 7.9% |
| Tax rate | 13.6% | 16.5% |
| Debt/Equity ratio | 0.12 | 0.12 |
| Cost of debt | 7.0% | 7.0% |
| After-tax WACC | 5.8% | 7.7% |
| Selected WACC | 6.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| RDT.L | Rosslyn Data Technologies PLC | 0.12 | 0.73 | 0.66 |
| ALWED.PA | Wedia SA | 0.21 | -0.18 | -0.15 |
| ARC.L | Arcontech Group PLC | 0.05 | -0.44 | -0.42 |
| B24.WA | Brand 24 SA | 0.04 | 0.07 | 0.07 |
| HEEROS.HE | Heeros Oyj | 0.02 | -0.55 | -0.54 |
| INX.L | i-nexus Global PLC | 3.66 | -0.87 | -0.21 |
| M4B.WA | M4B SA | 0.14 | 0.23 | 0.2 |
| MBT.L | Mobile Tornado Group PLC | 2.3 | 0.65 | 0.22 |
| O5H.DE | Openlimit Holding AG | 15.42 | 0.25 | 0.02 |
| QPR1V.HE | QPR Software Plc | 0.08 | 0.37 | 0.35 |
| Low | High | |
| Unlevered beta | -0.05 | 0.12 |
| Relevered beta | -0.06 | 0.13 |
| Adjusted relevered beta | 0.29 | 0.42 |
RDT.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 RDT.L:
cost_of_equity (6.80%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.29) + 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.