Big Yellow Group PLC (BYG.L) WACC Analysis

As of May 23, 2025, Big Yellow Group PLC (BYG.L) carries a Weighted Average Cost of Capital (WACC) of 7.5%. WACC reflects the blended rate Big Yellow Group PLC must pay to both equity and debt holders.

Within that, the cost of equity is 7.0%, the cost of debt is 4.0%, and the effective tax rate is 0.4%.

Breakdown of WACC Components

• Long-term bond rate: 4.0% – 4.5%
• Equity market risk premium: 6.0% – 7.0%
• Adjusted beta: 0.5 – 0.62
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.21

What It Means for Investors

With a selected WACC of 7.5%, Big Yellow Group PLC must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.