Revolution Bars Group PLC (RBG.L) WACC Analysis

As of May 23, 2025, Revolution Bars Group PLC (RBG.L) carries a Weighted Average Cost of Capital (WACC) of 15.0%. WACC reflects the blended rate Revolution Bars Group PLC must pay to both equity and debt holders.

Within that, the cost of equity is 5.8%, the cost of debt is 10.5%, and the effective tax rate is 0.1%.

Breakdown of WACC Components

• Long-term bond rate: 4.0% – 4.5%
• Equity market risk premium: 6.0% – 7.0%
• Adjusted beta: 0.3 – 0.49
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 17.46

What It Means for Investors

With a selected WACC of 15.0%, Revolution Bars Group PLC must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a relatively high financing requirement.