Alphawave IP Group PLC (AWE.L) WACC Analysis

As of May 27, 2025, Alphawave IP Group PLC (AWE.L) carries a Weighted Average Cost of Capital (WACC) of 8.3%. WACC reflects the blended rate Alphawave IP Group PLC must pay to both equity and debt holders.

Within that, the cost of equity is 7.2%, the cost of debt is 5.1%, and the effective tax rate is 28.7%.

Breakdown of WACC Components

• Long-term bond rate: 4.0% – 4.5%
• Equity market risk premium: 6.0% – 7.0%
• Adjusted beta: 0.53 – 0.85
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.16

What It Means for Investors

With a selected WACC of 8.3%, Alphawave IP Group PLC must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a moderate financing cost structure.