888 Holdings PLC (888.L) WACC Analysis

As of May 22, 2025, 888 Holdings PLC (888.L) carries a Weighted Average Cost of Capital (WACC) of 59.6%. WACC reflects the blended rate 888 Holdings PLC must pay to both equity and debt holders.

Within that, the cost of equity is 6.4%, the cost of debt is 17.7%, and the effective tax rate is 13.1%.

Breakdown of WACC Components

• Long-term bond rate: 3.7% – 4.2%
• Equity market risk premium: 6.0% – 7.0%
• Adjusted beta: 0.44 – 0.77
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 3.87

What It Means for Investors

With a selected WACC of 59.6%, 888 Holdings PLC must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a relatively high financing requirement.