What is BBH.L's WACC?

BB Healthcare Trust PLC (BBH.L) WACC Analysis

As of April 4, 2026, BB Healthcare Trust PLC (BBH.L) carries a Weighted Average Cost of Capital (WACC) of 9.8%. WACC reflects the blended rate BB Healthcare Trust PLC must pay to both equity and debt holders.

Within that, the cost of equity is 11.3%, the cost of debt is 7.0%, and the effective tax rate is 0.3%.

Breakdown of WACC Components

  • Long-term bond rate: 4.0% – 4.5%
  • Equity market risk premium: 6.0% – 7.0%
  • Adjusted beta: 1.22 – 1.31
  • Additional risk adjustment: 0.0% – 0.5%
  • Debt-to-equity ratio: 1

What It Means for Investors

With a selected WACC of 9.8%, BB Healthcare Trust PLC must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a moderate financing cost structure.