SYNT.L
Synthomer PLC
Price:  
104.20 
GBP
Volume:  
149,468.00
United Kingdom | Chemicals
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SYNT.L WACC - Weighted Average Cost of Capital

The WACC of Synthomer PLC (SYNT.L) is 6.0%.

The Cost of Equity of Synthomer PLC (SYNT.L) is 14.80%.
The Cost of Debt of Synthomer PLC (SYNT.L) is 6.25%.

Range Selected
Cost of equity 12.40% - 17.20% 14.80%
Tax rate 24.90% - 34.00% 29.45%
Cost of debt 5.50% - 7.00% 6.25%
WACC 5.4% - 6.6% 6.0%
WACC

SYNT.L WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 1.4 1.74
Additional risk adjustments 0.0% 0.5%
Cost of equity 12.40% 17.20%
Tax rate 24.90% 34.00%
Debt/Equity ratio 5.38 5.38
Cost of debt 5.50% 7.00%
After-tax WACC 5.4% 6.6%
Selected WACC 6.0%

SYNT.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 SYNT.L:

cost_of_equity (14.80%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (1.4) + 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.