SCS.L
SCS Group PLC
Price:  
270.00 
GBP
Volume:  
20,954.00
United Kingdom | Specialty Retail
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SCS.L WACC - Weighted Average Cost of Capital

The WACC of SCS Group PLC (SCS.L) is 10.3%.

The Cost of Equity of SCS Group PLC (SCS.L) is 8.85%.
The Cost of Debt of SCS Group PLC (SCS.L) is 14.80%.

Range Selected
Cost of equity 7.70% - 10.00% 8.85%
Tax rate 19.00% - 22.20% 20.60%
Cost of debt 9.20% - 20.40% 14.80%
WACC 7.6% - 13.1% 10.3%
WACC

SCS.L WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.62 0.71
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.70% 10.00%
Tax rate 19.00% 22.20%
Debt/Equity ratio 1.12 1.12
Cost of debt 9.20% 20.40%
After-tax WACC 7.6% 13.1%
Selected WACC 10.3%

SCS.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 SCS.L:

cost_of_equity (8.85%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.62) + 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.