Watkin Jones PLC (WJG.L) WACC Analysis

As of May 29, 2025, Watkin Jones PLC (WJG.L) carries a Weighted Average Cost of Capital (WACC) of 6.5%. WACC reflects the blended rate Watkin Jones PLC must pay to both equity and debt holders.

Within that, the cost of equity is 6.2%, the cost of debt is 4.0%, and the effective tax rate is 21.2%.

Breakdown of WACC Components

• Long-term bond rate: 4.0% – 4.5%
• Equity market risk premium: 6.0% – 7.0%
• Adjusted beta: 0.36 – 0.5
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.55

What It Means for Investors

With a selected WACC of 6.5%, Watkin Jones PLC must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.