TSTL.L WACC - Weighted Average Cost of Capital
The WACC of Tristel PLC (TSTL.L) is 8.2%.
| Range | Selected | |
| Cost of equity | 7.0% - 9.6% | 8.3% |
| Tax rate | 19.0% - 27.1% | 23.05% |
| Cost of debt | 4.6% - 4.6% | 4.6% |
| WACC | 6.9% - 9.4% | 8.2% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.5 | 0.66 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.0% | 9.6% |
| Tax rate | 19.0% | 27.1% |
| Debt/Equity ratio | 0.03 | 0.03 |
| Cost of debt | 4.6% | 4.6% |
| After-tax WACC | 6.9% | 9.4% |
| Selected WACC | 8.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| TSTL.L | Tristel PLC | 0.03 | 0.98 | 0.96 |
| ALCJ.PA | Crossject SA | 0.2 | 1.52 | 1.32 |
| BACTI B.ST | Bactiguard Holding AB | 0.2 | 0.01 | 0.01 |
| BMX.WA | BioMaxima SA | 0.24 | -0.19 | -0.16 |
| CRM.WA | PZ Cormay SA | 0.12 | 0.43 | 0.4 |
| GENT.OL | Gentian Diagnostics AS | 0.01 | 0.04 | 0.04 |
| ODX.L | Omega Diagnostics Group PLC | 0.02 | 0.61 | 0.6 |
| OSSD.ST | OssDsign AB | 0 | -0.2 | -0.2 |
| SEYKM.IS | Seyitler Kimya Sanayi AS | 0.04 | 1.21 | 1.17 |
| SPEC.L | Inspecs Group PLC | 1.06 | 0.72 | 0.4 |
| Low | High | |
| Unlevered beta | 0.25 | 0.48 |
| Relevered beta | 0.25 | 0.49 |
| Adjusted relevered beta | 0.5 | 0.66 |
TSTL.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 TSTL.L:
cost_of_equity (8.30%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.5) + 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.