SIG.L WACC - Weighted Average Cost of Capital
The WACC of Signature Aviation PLC (SIG.L) is 166.3%.
| Range | Selected | |
| Cost of equity | 7.1% - 10.0% | 8.55% |
| Tax rate | 19.9% - 43.0% | 31.45% |
| Cost of debt | 7.0% - 1515.6% | 761.3% |
| WACC | 6.6% - 326.0% | 166.3% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 5.3% | 6.3% |
| Adjusted beta | 0.78 | 0.96 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.1% | 10.0% |
| Tax rate | 19.9% | 43.0% |
| Debt/Equity ratio | 0.59 | 0.59 |
| Cost of debt | 7.0% | 1515.6% |
| After-tax WACC | 6.6% | 326.0% |
| Selected WACC | 166.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SIG.L | Signature Aviation PLC | 0.59 | 1.69 | 1.16 |
| ADB.MI | Aeroporto Guglielmo Marconi di Bologna SpA | 0.11 | 0.24 | 0.22 |
| CLEBI.IS | Celebi Hava Servisi AS | 0.35 | 1.05 | 0.82 |
| ENAV.MI | Enav SpA | 0.29 | 0.49 | 0.4 |
| FHZN.SW | Flughafen Zuerich AG | 0.22 | 0.58 | 0.49 |
| FRA.DE | Fraport AG Frankfurt Airport Services Worldwide | 2.3 | 0.49 | 0.17 |
| FSJ.L | James Fisher and Sons PLC | 1.14 | 0.12 | 0.06 |
| OLTH.AT | Thessaloniki Port Authority SA | 0.14 | 0.33 | 0.3 |
| TOUP.PA | Touax Sgtr Cite Sgt Cmte Taf Slm Touage Investissements Reunies SCA | 11.21 | 0.66 | 0.07 |
| TYA.MI | Toscana Aeroporti SpA | 0.3 | 0.14 | 0.11 |
| Low | High | |
| Unlevered beta | 0.2 | 0.34 |
| Relevered beta | 0.67 | 0.94 |
| Adjusted relevered beta | 0.78 | 0.96 |
SIG.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 SIG.L:
cost_of_equity (8.55%) = risk_free_rate (3.15%) + equity_risk_premium (5.80%) * adjusted_beta (0.78) + 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.