Anglo Pacific Group PLC (APF.L) WACC Analysis

As of May 22, 2025, Anglo Pacific Group PLC (APF.L) carries a Weighted Average Cost of Capital (WACC) of 10.2%. WACC reflects the blended rate Anglo Pacific Group PLC must pay to both equity and debt holders.

Within that, the cost of equity is 9.3%, the cost of debt is 5.2%, and the effective tax rate is 31.2%.

Breakdown of WACC Components

• Long-term bond rate: 4.4% – 4.9%
• Equity market risk premium: 6.4% – 7.4%
• Adjusted beta: 0.75 – 0.9
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.11

What It Means for Investors

With a selected WACC of 10.2%, Anglo Pacific Group PLC must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a relatively high financing requirement.