International Biotechnology Trust PLC (IBT.L) WACC Analysis

As of June 10, 2025, International Biotechnology Trust PLC (IBT.L) carries a Weighted Average Cost of Capital (WACC) of 9.8%. WACC reflects the blended rate International Biotechnology Trust PLC must pay to both equity and debt holders.

Within that, the cost of equity is 9.0%, the cost of debt is 5.2%, and the effective tax rate is 0.5%.

Breakdown of WACC Components

• Long-term bond rate: 4.0% – 4.5%
• Equity market risk premium: 6.0% – 7.0%
• Adjusted beta: 0.84 – 0.96
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.12

What It Means for Investors

With a selected WACC of 9.8%, International Biotechnology Trust PLC must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a moderate financing cost structure.