SWG.L
Shearwater Group PLC
Price:  
59.00 
GBP
Volume:  
51,095.00
United Kingdom | Software
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

SWG.L WACC - Weighted Average Cost of Capital

The WACC of Shearwater Group PLC (SWG.L) is 7.1%.

The Cost of Equity of Shearwater Group PLC (SWG.L) is 7.00%.
The Cost of Debt of Shearwater Group PLC (SWG.L) is 12.10%.

Range Selected
Cost of equity 6.00% - 8.00% 7.00%
Tax rate 19.00% - 19.00% 19.00%
Cost of debt 7.00% - 17.20% 12.10%
WACC 6.0% - 8.1% 7.1%
WACC

SWG.L WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.33 0.43
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.00% 8.00%
Tax rate 19.00% 19.00%
Debt/Equity ratio 0.03 0.03
Cost of debt 7.00% 17.20%
After-tax WACC 6.0% 8.1%
Selected WACC 7.1%

SWG.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 SWG.L:

cost_of_equity (7.00%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.33) + 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.