SGC.L WACC - Weighted Average Cost of Capital
The WACC of Stagecoach Group PLC (SGC.L) is 7.3%.
| Range | Selected | |
| Cost of equity | 9.8% - 13.0% | 11.4% |
| Tax rate | 5.2% - 19.0% | 12.1% |
| Cost of debt | 4.1% - 7.0% | 5.55% |
| WACC | 6.2% - 8.5% | 7.3% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 5.3% | 6.3% |
| Adjusted beta | 1.28 | 1.42 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.8% | 13.0% |
| Tax rate | 5.2% | 19.0% |
| Debt/Equity ratio | 1.57 | 1.57 |
| Cost of debt | 4.1% | 7.0% |
| After-tax WACC | 6.2% | 8.5% |
| Selected WACC | 7.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SGC.L | Stagecoach Group PLC | 1.57 | 2.35 | 0.96 |
| METRO.IS | Metro Ticari ve Mali Yatirimlar Holding AS | 0 | 0.67 | 0.67 |
| NEX.L | National Express Group PLC | 2.76 | 1.47 | 0.41 |
| PKP.WA | PKP Cargo SA | 3.66 | 0.55 | 0.13 |
| STF.PA | Stef SA | 0.87 | 0.69 | 0.39 |
| TRN.WA | Trans Polonia SA | 0.99 | 0.13 | 0.07 |
| WABERERS.BD | Waberer's International Nyrt | 1.53 | 0.31 | 0.13 |
| DSKE | Daseke Inc | 1.67 | 2.1 | 0.83 |
| ULH | Universal Logistics Holdings Inc | 1.1 | 1.01 | 0.5 |
| USX | US Xpress Enterprises Inc | 1.47 | 1.56 | 0.66 |
| WERN | Werner Enterprises Inc | 0.38 | 0.66 | 0.49 |
| Low | High | |
| Unlevered beta | 0.41 | 0.5 |
| Relevered beta | 1.42 | 1.63 |
| Adjusted relevered beta | 1.28 | 1.42 |
SGC.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 SGC.L:
cost_of_equity (11.40%) = risk_free_rate (3.15%) + equity_risk_premium (5.80%) * adjusted_beta (1.28) + 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.