Victoria PLC (VCP.L) WACC Analysis

As of May 22, 2025, Victoria PLC (VCP.L) carries a Weighted Average Cost of Capital (WACC) of 7.9%. WACC reflects the blended rate Victoria PLC must pay to both equity and debt holders.

Within that, the cost of equity is 17.6%, the cost of debt is 4.1%, and the effective tax rate is 12.8%.

Breakdown of WACC Components

• Long-term bond rate: 4.0% – 4.5%
• Equity market risk premium: 6.0% – 7.0%
• Adjusted beta: 2.28 – 2.89
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 14.66

What It Means for Investors

With a selected WACC of 7.9%, Victoria PLC must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.