Clipper Logistics PLC (CLG.L) WACC Analysis

As of May 23, 2025, Clipper Logistics PLC (CLG.L) carries a Weighted Average Cost of Capital (WACC) of 8.1%. WACC reflects the blended rate Clipper Logistics PLC must pay to both equity and debt holders.

Within that, the cost of equity is 8.2%, the cost of debt is 4.0%, and the effective tax rate is 20.1%.

Breakdown of WACC Components

• Long-term bond rate: 2.9% – 3.4%
• Equity market risk premium: 5.3% – 6.3%
• Adjusted beta: 0.99 – 1.04
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.27

What It Means for Investors

With a selected WACC of 8.1%, Clipper Logistics PLC must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a moderate financing cost structure.