YOU.L WACC - Weighted Average Cost of Capital

The WACC of YouGov PLC (YOU.L) is 8.8%.

The Cost of Equity of YouGov PLC (YOU.L) is 9.45%.

The Cost of Debt of YouGov PLC (YOU.L) is 12.50%.

	Range	Selected
Cost of equity	6.70% - 12.20%	9.45%
Tax rate	35.30% - 38.60%	36.95%
Cost of debt	6.20% - 18.80%	12.50%
WACC	5.6% - 12.0%	8.8%

WACC

YOU.L WACC calculation

Category	Low	High

Long-term bond rate	4.0%	4.5%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.44	1.04

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.70%	12.20%

Tax rate	35.30%	38.60%
Debt/Equity ratio	0.64	0.64
Cost of debt	6.20%	18.80%

After-tax WACC	5.6%	12.0%


Selected WACC	8.8%

YOU.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 YOU.L:

cost_of_equity (9.45%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.44) + 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.