WKP.L WACC - Weighted Average Cost of Capital
The WACC of Workspace Group PLC (WKP.L) is 6.9%.
| Range | Selected | |
| Cost of equity | 7.4% - 10.6% | 9% |
| Tax rate | 0.0% - 0.1% | 0.05% |
| Cost of debt | 4.0% - 6.2% | 5.1% |
| WACC | 5.6% - 8.3% | 6.9% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.56 | 0.8 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.4% | 10.6% |
| Tax rate | 0.0% | 0.1% |
| Debt/Equity ratio | 1.15 | 1.15 |
| Cost of debt | 4.0% | 6.2% |
| After-tax WACC | 5.6% | 8.3% |
| Selected WACC | 6.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| WKP.L | Workspace Group PLC | 1.15 | 0.97 | 0.45 |
| AOX.DE | alstria office REIT AG | 2.35 | -0.19 | -0.06 |
| BEFB.BR | Befimmo SA | 0.97 | 0.46 | 0.23 |
| CGR.PA | CeGeREAL SA | 1.22 | 0.9 | 0.41 |
| GPOR.L | Great Portland Estates PLC | 0.29 | 0.75 | 0.58 |
| GWI.L | Globalworth Real Estate Investments Ltd | 1.92 | 0.16 | 0.05 |
| HBRN.IR | Hibernia REIT PLC | 0.28 | 0.36 | 0.28 |
| NSI.AS | NSI NV | 0.79 | 0.82 | 0.46 |
| PAG.DE | PREOS Global Office Real Estate & Technology AG | 86.28 | 1.93 | 0.02 |
| YZBL.MC | Zambal Spain Socimi SA | 0.13 | 0.01 | 0.01 |
| Low | High | |
| Unlevered beta | 0.16 | 0.33 |
| Relevered beta | 0.34 | 0.7 |
| Adjusted relevered beta | 0.56 | 0.8 |
WKP.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 WKP.L:
cost_of_equity (9.00%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.56) + 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.