Kropz PLC (KRPZ.L) WACC Analysis

As of May 24, 2025, Kropz PLC (KRPZ.L) carries a Weighted Average Cost of Capital (WACC) of 7.8%. WACC reflects the blended rate Kropz PLC must pay to both equity and debt holders.

Within that, the cost of equity is 17.1%, the cost of debt is 4.0%, and the effective tax rate is 1.1%.

Breakdown of WACC Components

• Long-term bond rate: 4.0% – 4.5%
• Equity market risk premium: 6.0% – 7.0%
• Adjusted beta: 2.2 – 4.84
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 8.34

What It Means for Investors

With a selected WACC of 7.8%, Kropz PLC must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.