Springfield Properties PLC (SPR.L) WACC Analysis

As of May 22, 2025, Springfield Properties PLC (SPR.L) carries a Weighted Average Cost of Capital (WACC) of 8.3%. WACC reflects the blended rate Springfield Properties PLC must pay to both equity and debt holders.

Within that, the cost of equity is 8.1%, the cost of debt is 5.5%, and the effective tax rate is 21.4%.

Breakdown of WACC Components

• Long-term bond rate: 4.0% – 4.5%
• Equity market risk premium: 6.0% – 7.0%
• Adjusted beta: 0.69 – 1.08
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.53

What It Means for Investors

With a selected WACC of 8.3%, Springfield Properties PLC must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a moderate financing cost structure.