TCAP.L WACC - Weighted Average Cost of Capital

The WACC of TP ICAP Group PLC (TCAP.L) is 7.3%.

The Cost of Equity of TP ICAP Group PLC (TCAP.L) is 9.45%.

The Cost of Debt of TP ICAP Group PLC (TCAP.L) is 6.10%.

	Range	Selected
Cost of equity	8.30% - 10.60%	9.45%
Tax rate	39.90% - 42.20%	41.05%
Cost of debt	5.70% - 6.50%	6.10%
WACC	6.5% - 8.1%	7.3%

WACC

TCAP.L WACC calculation

Category	Low	High

Long-term bond rate	4.0%	4.5%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.72	0.81

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.30%	10.60%

Tax rate	39.90%	42.20%
Debt/Equity ratio	0.57	0.57
Cost of debt	5.70%	6.50%

After-tax WACC	6.5%	8.1%


Selected WACC	7.3%

TCAP.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 TCAP.L:

cost_of_equity (9.45%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.72) + 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.