SYS1.L WACC - Weighted Average Cost of Capital
The WACC of System1 Group PLC (SYS1.L) is 8.2%.
| Range | Selected | |
| Cost of equity | 7.2% - 9.3% | 8.25% |
| Tax rate | 28.2% - 38.3% | 33.25% |
| Cost of debt | 4.0% - 4.6% | 4.3% |
| WACC | 7.1% - 9.3% | 8.2% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.53 | 0.62 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.2% | 9.3% |
| Tax rate | 28.2% | 38.3% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 4.0% | 4.6% |
| After-tax WACC | 7.1% | 9.3% |
| Selected WACC | 8.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SYS1.L | System1 Group PLC | 0.01 | 0.01 | 0.01 |
| ADUX.PA | Adux SA | 0.29 | 0.73 | 0.61 |
| ALANT.PA | Antevenio SA | 0.17 | 0.79 | 0.72 |
| ALINV.PA | Invibes Advertising NV | 0.8 | 0.47 | 0.31 |
| ALMAK.PA | Makheia Group SA | 0.05 | 0.73 | 0.71 |
| ALMNG.PA | Madvertise SA | 0.26 | 1.52 | 1.3 |
| AWRD.ST | Awardit AB (publ) | 0.17 | 0.18 | 0.17 |
| IMS.WA | IMS SA | 0.19 | 0.31 | 0.28 |
| MCP.WA | Mediacap SA | 0.32 | 0.4 | 0.33 |
| SGC.MI | SG Company SpA | 1.19 | 0.13 | 0.07 |
| Low | High | |
| Unlevered beta | 0.3 | 0.44 |
| Relevered beta | 0.3 | 0.43 |
| Adjusted relevered beta | 0.53 | 0.62 |
SYS1.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 SYS1.L:
cost_of_equity (8.25%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * 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.