STCK.L
Stock Spirits Group PLC
Price:  
377.00 
GBP
Volume:  
14,118,200.00
United Kingdom | Beverages
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STCK.L WACC - Weighted Average Cost of Capital

The WACC of Stock Spirits Group PLC (STCK.L) is 6.3%.

The Cost of Equity of Stock Spirits Group PLC (STCK.L) is 6.60%.
The Cost of Debt of Stock Spirits Group PLC (STCK.L) is 4.25%.

Range Selected
Cost of equity 5.80% - 7.40% 6.60%
Tax rate 27.40% - 30.20% 28.80%
Cost of debt 4.00% - 4.50% 4.25%
WACC 5.5% - 7.1% 6.3%
WACC

STCK.L WACC calculation

Category Low High
Long-term bond rate 2.9% 3.4%
Equity market risk premium 5.3% 6.3%
Adjusted beta 0.53 0.55
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.80% 7.40%
Tax rate 27.40% 30.20%
Debt/Equity ratio 0.09 0.09
Cost of debt 4.00% 4.50%
After-tax WACC 5.5% 7.1%
Selected WACC 6.3%

STCK.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 STCK.L:

cost_of_equity (6.60%) = risk_free_rate (3.15%) + equity_risk_premium (5.80%) * adjusted_beta (0.53) + 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.