Vitec Group Plc (VTC.L) WACC Analysis

As of May 22, 2025, Vitec Group Plc (VTC.L) carries a Weighted Average Cost of Capital (WACC) of 8.5%. WACC reflects the blended rate Vitec Group Plc must pay to both equity and debt holders.

Within that, the cost of equity is 8.0%, the cost of debt is 4.5%, and the effective tax rate is 21.1%.

Breakdown of WACC Components

• Long-term bond rate: 2.9% – 3.4%
• Equity market risk premium: 5.3% – 6.3%
• Adjusted beta: 0.95 – 1.13
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.27

What It Means for Investors

With a selected WACC of 8.5%, Vitec Group Plc must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a moderate financing cost structure.