VRS.L
Versarien PLC
Price:  
0.04 
GBP
Volume:  
52,359,012.00
United Kingdom | Chemicals
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VRS.L WACC - Weighted Average Cost of Capital

The WACC of Versarien PLC (VRS.L) is 7.3%.

The Cost of Equity of Versarien PLC (VRS.L) is 7.30%.
The Cost of Debt of Versarien PLC (VRS.L) is 7.30%.

Range Selected
Cost of equity 5.80% - 8.80% 7.30%
Tax rate 0.70% - 1.10% 0.90%
Cost of debt 5.40% - 9.20% 7.30%
WACC 5.5% - 9.1% 7.3%
WACC

VRS.L WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.3 0.55
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.80% 8.80%
Tax rate 0.70% 1.10%
Debt/Equity ratio 2.79 2.79
Cost of debt 5.40% 9.20%
After-tax WACC 5.5% 9.1%
Selected WACC 7.3%

VRS.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 VRS.L:

cost_of_equity (7.30%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.3) + 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.