Watchstone Group PLC (WTG.L) WACC Analysis

As of May 22, 2025, Watchstone Group PLC (WTG.L) carries a Weighted Average Cost of Capital (WACC) of 7.1%. WACC reflects the blended rate Watchstone Group PLC must pay to both equity and debt holders.

Within that, the cost of equity is 5.8%, the cost of debt is 5.0%, and the effective tax rate is 0.6%.

Breakdown of WACC Components

• Long-term bond rate: 2.9% – 3.4%
• Equity market risk premium: 5.3% – 6.3%
• Adjusted beta: 0.54 – 0.68
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0

What It Means for Investors

With a selected WACC of 7.1%, Watchstone Group PLC must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.