Edinburgh Worldwide Investment Trust PLC (EWI.L) WACC Analysis

As of May 31, 2025, Edinburgh Worldwide Investment Trust PLC (EWI.L) carries a Weighted Average Cost of Capital (WACC) of 11.1%. WACC reflects the blended rate Edinburgh Worldwide Investment Trust PLC must pay to both equity and debt holders.

Within that, the cost of equity is 10.7%, the cost of debt is 4.2%, and the effective tax rate is 0.0%.

Breakdown of WACC Components

• Long-term bond rate: 4.0% – 4.5%
• Equity market risk premium: 6.0% – 7.0%
• Adjusted beta: 1.12 – 1.24
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.16

What It Means for Investors

With a selected WACC of 11.1%, Edinburgh Worldwide Investment Trust PLC must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a relatively high financing requirement.