AVEVA Group PLC (AVV.L) WACC Analysis

As of May 21, 2025, AVEVA Group PLC (AVV.L) carries a Weighted Average Cost of Capital (WACC) of 8.1%. WACC reflects the blended rate AVEVA Group PLC must pay to both equity and debt holders.

Within that, the cost of equity is 6.5%, the cost of debt is 7.1%, and the effective tax rate is 26.1%.

Breakdown of WACC Components

• Long-term bond rate: 4.0% – 4.5%
• Equity market risk premium: 6.0% – 7.0%
• Adjusted beta: 0.42 – 0.75
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.08

What It Means for Investors

With a selected WACC of 8.1%, AVEVA Group PLC must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a moderate financing cost structure.