Capital Ltd (CAPD.L) WACC Analysis

As of June 13, 2025, Capital Ltd (CAPD.L) carries a Weighted Average Cost of Capital (WACC) of 8.7%. WACC reflects the blended rate Capital Ltd must pay to both equity and debt holders.

Within that, the cost of equity is 9.1%, the cost of debt is 7.1%, and the effective tax rate is 25.7%.

Breakdown of WACC Components

• Long-term bond rate: 4.0% – 4.5%
• Equity market risk premium: 6.0% – 7.0%
• Adjusted beta: 0.85 – 0.94
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.78

What It Means for Investors

With a selected WACC of 8.7%, Capital Ltd must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a moderate financing cost structure.