CTPT.L WACC - Weighted Average Cost of Capital

The WACC of CT Property Trust Ltd (CTPT.L) is 8.3%.

The Cost of Equity of CT Property Trust Ltd (CTPT.L) is 10.25%.

The Cost of Debt of CT Property Trust Ltd (CTPT.L) is 4.60%.

	Range	Selected
Cost of equity	8.90% - 11.60%	10.25%
Tax rate	0.90% - 1.70%	1.30%
Cost of debt	4.00% - 5.20%	4.60%
WACC	7.2% - 9.4%	8.3%

WACC

CTPT.L WACC calculation

Category	Low	High

Long-term bond rate	4.0%	4.5%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.81	0.94

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.90%	11.60%

Tax rate	0.90%	1.70%
Debt/Equity ratio	0.49	0.49
Cost of debt	4.00%	5.20%

After-tax WACC	7.2%	9.4%


Selected WACC	8.3%

CTPT.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 CTPT.L:

cost_of_equity (10.25%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.81) + 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.