BLND.L
British Land Company PLC
Price:  
355.2 
GBP
Volume:  
2,971,976
United Kingdom | Equity Real Estate Investment Trusts (REITs)

BLND.L WACC - Weighted Average Cost of Capital

The WACC of British Land Company PLC (BLND.L) is 7.1%.

The Cost of Equity of British Land Company PLC (BLND.L) is 8.85%.
The Cost of Debt of British Land Company PLC (BLND.L) is 4.75%.

RangeSelected
Cost of equity7.4% - 10.3%8.85%
Tax rate0.9% - 1.8%1.35%
Cost of debt4.0% - 5.5%4.75%
WACC5.9% - 8.2%7.1%
WACC

BLND.L WACC calculation

CategoryLowHigh
Long-term bond rate4.0%4.5%
Equity market risk premium6.0%7.0%
Adjusted beta0.580.76
Additional risk adjustments0.0%0.5%
Cost of equity7.4%10.3%
Tax rate0.9%1.8%
Debt/Equity ratio
0.760.76
Cost of debt4.0%5.5%
After-tax WACC5.9%8.2%
Selected WACC7.1%

BLND.L's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for BLND.L:

cost_of_equity (8.85%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.58) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.