Foresight Group Holdings Ltd (FSG.L) WACC Analysis

As of May 28, 2025, Foresight Group Holdings Ltd (FSG.L) carries a Weighted Average Cost of Capital (WACC) of 11.7%. WACC reflects the blended rate Foresight Group Holdings Ltd must pay to both equity and debt holders.

Within that, the cost of equity is 10.2%, the cost of debt is 4.0%, and the effective tax rate is 7.2%.

Breakdown of WACC Components

• Long-term bond rate: 4.0% – 4.5%
• Equity market risk premium: 6.0% – 7.0%
• Adjusted beta: 1.04 – 1.21
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.02

What It Means for Investors

With a selected WACC of 11.7%, Foresight Group Holdings Ltd must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a relatively high financing requirement.