WTB.L
Whitbread PLC
Price:  
2,889.00 
GBP
Volume:  
378,085.00
United Kingdom | Hotels, Restaurants & Leisure
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WTB.L WACC - Weighted Average Cost of Capital

The WACC of Whitbread PLC (WTB.L) is 6.3%.

The Cost of Equity of Whitbread PLC (WTB.L) is 9.10%.
The Cost of Debt of Whitbread PLC (WTB.L) is 5.10%.

Range Selected
Cost of equity 8.00% - 10.20% 9.10%
Tax rate 26.40% - 28.50% 27.45%
Cost of debt 4.00% - 6.20% 5.10%
WACC 5.4% - 7.3% 6.3%
WACC

WTB.L WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.68 0.75
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.00% 10.20%
Tax rate 26.40% 28.50%
Debt/Equity ratio 1.04 1.04
Cost of debt 4.00% 6.20%
After-tax WACC 5.4% 7.3%
Selected WACC 6.3%

WTB.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 WTB.L:

cost_of_equity (9.10%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.68) + 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.