WCW.L
Walker Crips Group PLC
Price:  
14.00 
GBP
Volume:  
38,701.00
United Kingdom | Capital Markets
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WCW.L WACC - Weighted Average Cost of Capital

The WACC of Walker Crips Group PLC (WCW.L) is 6.4%.

The Cost of Equity of Walker Crips Group PLC (WCW.L) is 7.75%.
The Cost of Debt of Walker Crips Group PLC (WCW.L) is 5.50%.

Range Selected
Cost of equity 6.50% - 9.00% 7.75%
Tax rate 30.40% - 48.60% 39.50%
Cost of debt 4.00% - 7.00% 5.50%
WACC 5.4% - 7.4% 6.4%
WACC

WCW.L WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.42 0.57
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.50% 9.00%
Tax rate 30.40% 48.60%
Debt/Equity ratio 0.41 0.41
Cost of debt 4.00% 7.00%
After-tax WACC 5.4% 7.4%
Selected WACC 6.4%

WCW.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 WCW.L:

cost_of_equity (7.75%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.42) + 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.