Bluerock Diamonds PLC (BRD.L) WACC Analysis

As of June 8, 2025, Bluerock Diamonds PLC (BRD.L) carries a Weighted Average Cost of Capital (WACC) of 5.6%. WACC reflects the blended rate Bluerock Diamonds PLC must pay to both equity and debt holders.

Within that, the cost of equity is 7.3%, the cost of debt is 5.0%, and the effective tax rate is 19.0%.

Breakdown of WACC Components

• Long-term bond rate: 4.0% – 4.5%
• Equity market risk premium: 6.0% – 7.0%
• Adjusted beta: 0.55 – 1.09
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 2.75

What It Means for Investors

With a selected WACC of 5.6%, Bluerock Diamonds PLC must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.