RGD.L WACC - Weighted Average Cost of Capital
The WACC of Real Good Food PLC (RGD.L) is 5.5%.
| Range | Selected | |
| Cost of equity | 6.1% - 12.6% | 9.35% |
| Tax rate | 1.0% - 3.7% | 2.35% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 4.1% - 7.0% | 5.5% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.35 | 1.09 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.1% | 12.6% |
| Tax rate | 1.0% | 3.7% |
| Debt/Equity ratio | 21.7 | 21.7 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 4.1% | 7.0% |
| Selected WACC | 5.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| RGD.L | Real Good Food PLC | 21.7 | 1.07 | 0.05 |
| KEPEN.AT | Flour Mills Kepenos SA | 2.31 | -0.04 | -0.01 |
| KMOL.AT | Karamolengos Bakery Industry SA | 2.76 | 0.37 | 0.1 |
| KREKA.AT | Kreka SA | 15.33 | -0.86 | -0.05 |
| NIKAS.AT | PG Nikas SA | 0.58 | -0.09 | -0.06 |
| PETUN.IS | Pinar Entegre Et ve Un Sanayii AS | 0.13 | 1.17 | 1.04 |
| PPS.WA | Przedsiebiorstwo Przemyslu Spozywczego PEPEES SA | 1.92 | 0.03 | 0.01 |
| PRF1T.TL | PRFoods AS | 6.94 | 0.43 | 0.05 |
| UKR.L | Ukrproduct Group Ltd | 2.84 | -0.12 | -0.03 |
| VLS.MI | Valsoia SpA | 0.08 | 0.06 | 0.06 |
| Low | High | |
| Unlevered beta | 0 | 0.05 |
| Relevered beta | 0.03 | 1.13 |
| Adjusted relevered beta | 0.35 | 1.09 |
RGD.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 RGD.L:
cost_of_equity (9.35%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.35) + 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.