Safestyle UK PLC (SFE.L) WACC Analysis

As of May 28, 2025, Safestyle UK PLC (SFE.L) carries a Weighted Average Cost of Capital (WACC) of 4.4%. WACC reflects the blended rate Safestyle UK PLC must pay to both equity and debt holders.

Within that, the cost of equity is 8.8%, the cost of debt is 5.0%, and the effective tax rate is 18.1%.

Breakdown of WACC Components

• Long-term bond rate: 4.0% – 4.5%
• Equity market risk premium: 6.0% – 7.0%
• Adjusted beta: 0.81 – 2.7
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 31.77

What It Means for Investors

With a selected WACC of 4.4%, Safestyle UK PLC must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.