Sigma Capital Group PLC (SGM.L) WACC Analysis

As of May 27, 2025, Sigma Capital Group PLC (SGM.L) carries a Weighted Average Cost of Capital (WACC) of 5.6%. WACC reflects the blended rate Sigma Capital Group PLC must pay to both equity and debt holders.

Within that, the cost of equity is 5.1%, the cost of debt is 4.0%, and the effective tax rate is 8.6%.

Breakdown of WACC Components

• Long-term bond rate: 2.9% – 3.4%
• Equity market risk premium: 5.3% – 6.3%
• Adjusted beta: 0.41 – 0.47
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.24

What It Means for Investors

With a selected WACC of 5.6%, Sigma Capital Group PLC must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.