BlackRock Throgmorton Trust plc (THRG.L) WACC Analysis

As of June 10, 2025, BlackRock Throgmorton Trust plc (THRG.L) carries a Weighted Average Cost of Capital (WACC) of 11.2%. WACC reflects the blended rate BlackRock Throgmorton Trust plc must pay to both equity and debt holders.

Within that, the cost of equity is 9.6%, the cost of debt is 4.6%, and the effective tax rate is 0.0%.

Breakdown of WACC Components

• Long-term bond rate: 4.0% – 4.5%
• Equity market risk premium: 6.0% – 7.0%
• Adjusted beta: 0.93 – 1.12
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0

What It Means for Investors

With a selected WACC of 11.2%, BlackRock Throgmorton Trust plc must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a relatively high financing requirement.