Burford Capital Ltd (BUR.L) WACC Analysis

As of June 21, 2025, Burford Capital Ltd (BUR.L) carries a Weighted Average Cost of Capital (WACC) of 8.2%. WACC reflects the blended rate Burford Capital Ltd must pay to both equity and debt holders.

Within that, the cost of equity is 9.4%, the cost of debt is 5.0%, and the effective tax rate is 10.1%.

Breakdown of WACC Components

• Long-term bond rate: 4.0% – 4.5%
• Equity market risk premium: 6.0% – 7.0%
• Adjusted beta: 0.9 – 0.98
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.62

What It Means for Investors

With a selected WACC of 8.2%, Burford Capital Ltd must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a moderate financing cost structure.