Amte Power PLC (AMTE.L) WACC Analysis

As of June 2, 2025, Amte Power PLC (AMTE.L) carries a Weighted Average Cost of Capital (WACC) of 10.7%. WACC reflects the blended rate Amte Power PLC must pay to both equity and debt holders.

Within that, the cost of equity is 10.2%, the cost of debt is 4.4%, and the effective tax rate is 5.8%.

Breakdown of WACC Components

• Long-term bond rate: 4.0% – 4.5%
• Equity market risk premium: 6.0% – 7.0%
• Adjusted beta: 1.04 – 1.59
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.46

What It Means for Investors

With a selected WACC of 10.7%, Amte Power PLC must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a relatively high financing requirement.