SFOR.L
S4 Capital PLC
Price:  
24.50 
GBP
Volume:  
2,849,328.00
United Kingdom | Media
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SFOR.L WACC - Weighted Average Cost of Capital

The WACC of S4 Capital PLC (SFOR.L) is 8.2%.

The Cost of Equity of S4 Capital PLC (SFOR.L) is 14.80%.
The Cost of Debt of S4 Capital PLC (SFOR.L) is 5.55%.

Range Selected
Cost of equity 11.10% - 18.50% 14.80%
Tax rate 2.50% - 4.60% 3.55%
Cost of debt 5.20% - 5.90% 5.55%
WACC 6.9% - 9.4% 8.2%
WACC

SFOR.L WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 1.2 1.93
Additional risk adjustments 0.0% 0.5%
Cost of equity 11.10% 18.50%
Tax rate 2.50% 4.60%
Debt/Equity ratio 2.34 2.34
Cost of debt 5.20% 5.90%
After-tax WACC 6.9% 9.4%
Selected WACC 8.2%

SFOR.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 SFOR.L:

cost_of_equity (14.80%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (1.2) + 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.