PBLT.L
TOC Property Backed Lending Trust PLC
Price:  
86.00 
Volume:  
2,860.00
United Kingdom | Thrifts & Mortgage Finance
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PBLT.L WACC - Weighted Average Cost of Capital

The WACC of TOC Property Backed Lending Trust PLC (PBLT.L) is 7.5%.

The Cost of Equity of TOC Property Backed Lending Trust PLC (PBLT.L) is 11.00%.
The Cost of Debt of TOC Property Backed Lending Trust PLC (PBLT.L) is 5.00%.

Range Selected
Cost of equity 8.50% - 13.50% 11.00%
Tax rate 19.00% - 19.00% 19.00%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.3% - 8.8% 7.5%
WACC

PBLT.L WACC calculation

Category Low High
Long-term bond rate 2.9% 3.4%
Equity market risk premium 5.3% 6.3%
Adjusted beta 1.04 1.5
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.50% 13.50%
Tax rate 19.00% 19.00%
Debt/Equity ratio 1 1
Cost of debt 5.00% 5.00%
After-tax WACC 6.3% 8.8%
Selected WACC 7.5%

PBLT.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 PBLT.L:

cost_of_equity (11.00%) = risk_free_rate (3.15%) + equity_risk_premium (5.80%) * adjusted_beta (1.04) + 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.