Verditek PLC (VDTK.L) WACC Analysis

As of May 28, 2025, Verditek PLC (VDTK.L) carries a Weighted Average Cost of Capital (WACC) of 7.5%. WACC reflects the blended rate Verditek PLC must pay to both equity and debt holders.

Within that, the cost of equity is 6.0%, the cost of debt is 7.0%, and the effective tax rate is 0.7%.

Breakdown of WACC Components

• Long-term bond rate: 3.7% – 4.2%
• Equity market risk premium: 6.0% – 7.0%
• Adjusted beta: 0.38 – 0.66
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.32

What It Means for Investors

With a selected WACC of 7.5%, Verditek PLC must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.