WINK.L WACC - Weighted Average Cost of Capital
The WACC of M Winkworth PLC (WINK.L) is 6.7%.
| Range | Selected | |
| Cost of equity | 6.0% - 7.5% | 6.75% |
| Tax rate | 19.7% - 20.6% | 20.15% |
| Cost of debt | 4.6% - 4.6% | 4.6% |
| WACC | 6.0% - 7.4% | 6.7% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.34 | 0.35 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.0% | 7.5% |
| Tax rate | 19.7% | 20.6% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 4.6% | 4.6% |
| After-tax WACC | 6.0% | 7.4% |
| Selected WACC | 6.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| WINK.L | M Winkworth PLC | 0.83 | -0.16 | -0.1 |
| ARC1T.TL | Arco Vara AS | 0.92 | 0.09 | 0.05 |
| BERR.PA | Financiere Immobiliere Etang Berre Medit SA | 0.04 | 0.43 | 0.41 |
| CZT.WA | Czerwona Torebka SA | 0.01 | -0.15 | -0.15 |
| EFI.PA | Eurasia Fonciere Investissements SA | 0.93 | 0.09 | 0.05 |
| IMMOU.BR | Immo Moury Sicaf Immobiliere Publique de Droit Belge SCA | 1.59 | -0.01 | -0.01 |
| NR.MI | Nova Re Siiq SpA | 1.86 | 0.07 | 0.03 |
| PLAZ.L | Plaza Centers NV | 21.65 | 0.48 | 0.03 |
| STUDBO.ST | Studentbostader I Sverige AB (publ) | 6 | 0.24 | 0.04 |
| VROS.DE | VERIANOS SE | 33.63 | -0.13 | 0 |
| Low | High | |
| Unlevered beta | 0.01 | 0.03 |
| Relevered beta | 0.01 | 0.03 |
| Adjusted relevered beta | 0.34 | 0.35 |
WINK.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 WINK.L:
cost_of_equity (6.75%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.34) + 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.