STAF.L WACC - Weighted Average Cost of Capital
The WACC of Staffline Group PLC (STAF.L) is 11.1%.
| Range | Selected | |
| Cost of equity | 9.9% - 13.0% | 11.45% |
| Tax rate | 19.0% - 19.0% | 19% |
| Cost of debt | 7.6% - 15.2% | 11.4% |
| WACC | 9.3% - 12.9% | 11.1% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.98 | 1.15 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.9% | 13.0% |
| Tax rate | 19.0% | 19.0% |
| Debt/Equity ratio | 0.18 | 0.18 |
| Cost of debt | 7.6% | 15.2% |
| After-tax WACC | 9.3% | 12.9% |
| Selected WACC | 11.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| STAF.L | Staffline Group PLC | 0.18 | 0.7 | 0.61 |
| BRNL.AS | Brunel International NV | 0.21 | 1.29 | 1.11 |
| GATC.L | Gattaca PLC | 0.09 | 0.4 | 0.38 |
| HAS.L | Hays PLC | 0.24 | 1.42 | 1.19 |
| PAGE.L | Pagegroup PLC | 0.18 | 1.53 | 1.33 |
| PRP.L | Prime People PLC | 0.36 | 1.88 | 1.46 |
| RAND.AS | Randstad NV | 0.31 | 0.83 | 0.67 |
| RWA.L | Robert Walters Plc | 0.66 | 0.09 | 0.06 |
| STEM.L | SThree PLC | 0.13 | 1.08 | 0.97 |
| TBI | TrueBlue Inc | 0.04 | 1.07 | 1.04 |
| Low | High | |
| Unlevered beta | 0.85 | 1.07 |
| Relevered beta | 0.97 | 1.22 |
| Adjusted relevered beta | 0.98 | 1.15 |
STAF.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 STAF.L:
cost_of_equity (11.45%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.98) + 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.