EnQuest PLC (ENQ.L) WACC Analysis

As of June 8, 2025, EnQuest PLC (ENQ.L) carries a Weighted Average Cost of Capital (WACC) of 9.2%. WACC reflects the blended rate EnQuest PLC must pay to both equity and debt holders.

Within that, the cost of equity is 20.8%, the cost of debt is 5.5%, and the effective tax rate is 13.8%.

Breakdown of WACC Components

• Long-term bond rate: 4.0% – 4.5%
• Equity market risk premium: 6.0% – 7.0%
• Adjusted beta: 2.81 – 3.5
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 3.47

What It Means for Investors

With a selected WACC of 9.2%, EnQuest PLC must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a moderate financing cost structure.