VLG.L
Venture Life Group PLC
Price:  
45.00 
GBP
Volume:  
1,249,698.00
United Kingdom | Personal Products
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VLG.L WACC - Weighted Average Cost of Capital

The WACC of Venture Life Group PLC (VLG.L) is 6.9%.

The Cost of Equity of Venture Life Group PLC (VLG.L) is 8.20%.
The Cost of Debt of Venture Life Group PLC (VLG.L) is 5.80%.

Range Selected
Cost of equity 7.00% - 9.40% 8.20%
Tax rate 27.20% - 30.10% 28.65%
Cost of debt 4.00% - 7.60% 5.80%
WACC 5.7% - 8.1% 6.9%
WACC

VLG.L WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.51 0.63
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.00% 9.40%
Tax rate 27.20% 30.10%
Debt/Equity ratio 0.46 0.46
Cost of debt 4.00% 7.60%
After-tax WACC 5.7% 8.1%
Selected WACC 6.9%

VLG.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 VLG.L:

cost_of_equity (8.20%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.51) + 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.