TMPL.L
Temple Bar Investment Trust PLC
Price:  
299.50 
GBP
Volume:  
651,677.00
United Kingdom | N/A
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TMPL.L WACC - Weighted Average Cost of Capital

The WACC of Temple Bar Investment Trust PLC (TMPL.L) is 11.2%.

The Cost of Equity of Temple Bar Investment Trust PLC (TMPL.L) is 11.80%.
The Cost of Debt of Temple Bar Investment Trust PLC (TMPL.L) is 4.30%.

Range Selected
Cost of equity 10.30% - 13.30% 11.80%
Tax rate 0.80% - 1.10% 0.95%
Cost of debt 4.00% - 4.60% 4.30%
WACC 9.8% - 12.6% 11.2%
WACC

TMPL.L WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 1.06 1.2
Additional risk adjustments 0.0% 0.5%
Cost of equity 10.30% 13.30%
Tax rate 0.80% 1.10%
Debt/Equity ratio 0.09 0.09
Cost of debt 4.00% 4.60%
After-tax WACC 9.8% 12.6%
Selected WACC 11.2%

TMPL.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 TMPL.L:

cost_of_equity (11.80%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (1.06) + 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.