SUR.L
Sureserve Group PLC
Price:  
124.50 
GBP
Volume:  
30,523.00
United Kingdom | Commercial Services & Supplies
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SUR.L WACC - Weighted Average Cost of Capital

The WACC of Sureserve Group PLC (SUR.L) is 7.4%.

The Cost of Equity of Sureserve Group PLC (SUR.L) is 7.55%.
The Cost of Debt of Sureserve Group PLC (SUR.L) is 6.85%.

Range Selected
Cost of equity 6.60% - 8.50% 7.55%
Tax rate 18.70% - 20.60% 19.65%
Cost of debt 4.60% - 9.10% 6.85%
WACC 6.5% - 8.4% 7.4%
WACC

SUR.L WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.44 0.51
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.60% 8.50%
Tax rate 18.70% 20.60%
Debt/Equity ratio 0.07 0.07
Cost of debt 4.60% 9.10%
After-tax WACC 6.5% 8.4%
Selected WACC 7.4%

SUR.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 SUR.L:

cost_of_equity (7.55%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.44) + 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.