Artemis Alpha Trust PLC (ATS.L) WACC Analysis

As of May 28, 2025, Artemis Alpha Trust PLC (ATS.L) carries a Weighted Average Cost of Capital (WACC) of 10.2%. WACC reflects the blended rate Artemis Alpha Trust PLC must pay to both equity and debt holders.

Within that, the cost of equity is 14.1%, the cost of debt is 4.6%, and the effective tax rate is 0.6%.

Breakdown of WACC Components

• Long-term bond rate: 4.0% – 4.5%
• Equity market risk premium: 6.0% – 7.0%
• Adjusted beta: 1.69 – 1.79
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 1

What It Means for Investors

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