Braemar Shipping Services PLC (BMS.L) WACC Analysis

As of June 4, 2025, Braemar Shipping Services PLC (BMS.L) carries a Weighted Average Cost of Capital (WACC) of 6.5%. WACC reflects the blended rate Braemar Shipping Services PLC must pay to both equity and debt holders.

Within that, the cost of equity is 6.6%, the cost of debt is 4.1%, and the effective tax rate is 27.0%.

Breakdown of WACC Components

• Long-term bond rate: 4.0% – 4.5%
• Equity market risk premium: 6.0% – 7.0%
• Adjusted beta: 0.44 – 0.59
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.41

What It Means for Investors

With a selected WACC of 6.5%, Braemar Shipping Services PLC must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.