Crest Nicholson Holdings PLC (CRST.L) WACC Analysis

As of May 31, 2025, Crest Nicholson Holdings PLC (CRST.L) carries a Weighted Average Cost of Capital (WACC) of 7.6%. WACC reflects the blended rate Crest Nicholson Holdings PLC must pay to both equity and debt holders.

Within that, the cost of equity is 6.6%, the cost of debt is 5.1%, and the effective tax rate is 20.2%.

Breakdown of WACC Components

• Long-term bond rate: 4.0% – 4.5%
• Equity market risk premium: 6.0% – 7.0%
• Adjusted beta: 0.44 – 0.68
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.2

What It Means for Investors

With a selected WACC of 7.6%, Crest Nicholson Holdings PLC must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.