WSG.L WACC - Weighted Average Cost of Capital
The WACC of Westminster Group PLC (WSG.L) is 6.4%.
| Range | Selected | |
| Cost of equity | 5.6% - 7.8% | 6.7% |
| Tax rate | 1.7% - 2.8% | 2.25% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.5% - 7.3% | 6.4% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.27 | 0.41 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.6% | 7.8% |
| Tax rate | 1.7% | 2.8% |
| Debt/Equity ratio | 0.21 | 0.21 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.5% | 7.3% |
| Selected WACC | 6.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| WSG.L | Westminster Group PLC | 0.21 | 0.89 | 0.74 |
| ALDRV.PA | Drone Volt SA | 0.31 | 0.11 | 0.08 |
| ALI2S.PA | I2S SA | 0.24 | -0.26 | -0.21 |
| ALM.PA | Alpha MOS SA | 0.1 | -1.1 | -1 |
| ANOT.ST | Anoto Group AB | 0.07 | 1.83 | 1.72 |
| MANTEX.ST | Mantex AB | 0.07 | 0.1 | 0.09 |
| OTAQ.L | OTAQ PLC | 0.97 | -0.77 | -0.39 |
| PIP.L | Pipehawk PLC | 10.87 | 0.05 | 0 |
| UVEL.L | UniVision Engineering Ltd | 5.05 | -1.78 | -0.3 |
| WPAY.ST | Westpay AB | 0.04 | 0.49 | 0.48 |
| Low | High | |
| Unlevered beta | -0.08 | 0.09 |
| Relevered beta | -0.09 | 0.12 |
| Adjusted relevered beta | 0.27 | 0.41 |
WSG.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 WSG.L:
cost_of_equity (6.70%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.27) + 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.