De La Rue PLC (DLAR.L) WACC Analysis

As of May 25, 2025, De La Rue PLC (DLAR.L) carries a Weighted Average Cost of Capital (WACC) of 10.5%. WACC reflects the blended rate De La Rue PLC must pay to both equity and debt holders.

Within that, the cost of equity is 8.7%, the cost of debt is 8.3%, and the effective tax rate is 10.6%.

Breakdown of WACC Components

• Long-term bond rate: 4.0% – 4.5%
• Equity market risk premium: 6.0% – 7.0%
• Adjusted beta: 0.79 – 1.11
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.51

What It Means for Investors

With a selected WACC of 10.5%, De La Rue PLC must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a relatively high financing requirement.