SUPP.L WACC - Weighted Average Cost of Capital

The WACC of Schroder UK Public Private Trust PLC (SUPP.L) is 9.1%.

The Cost of Equity of Schroder UK Public Private Trust PLC (SUPP.L) is 13.75%.

The Cost of Debt of Schroder UK Public Private Trust PLC (SUPP.L) is 5.50%.

	Range	Selected
Cost of equity	11.30% - 16.20%	13.75%
Tax rate	19.00% - 19.00%	19.00%
Cost of debt	4.00% - 7.00%	5.50%
WACC	7.3% - 10.9%	9.1%

WACC

SUPP.L WACC calculation

Category	Low	High

Long-term bond rate	4.4%	4.9%
Equity market risk premium	6.4%	7.4%
Adjusted beta	1.08	1.45

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.30%	16.20%

Tax rate	19.00%	19.00%
Debt/Equity ratio	1	1
Cost of debt	4.00%	7.00%

After-tax WACC	7.3%	10.9%


Selected WACC	9.1%

SUPP.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 SUPP.L:

cost_of_equity (13.75%) = risk_free_rate (4.65%) + equity_risk_premium (6.90%) * adjusted_beta (1.08) + 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.