TRY.L WACC - Weighted Average Cost of Capital

The WACC of TR Property Investment Trust PLC (TRY.L) is 11.1%.

The Cost of Equity of TR Property Investment Trust PLC (TRY.L) is 11.50%.

The Cost of Debt of TR Property Investment Trust PLC (TRY.L) is 4.75%.

	Range	Selected
Cost of equity	10.10% - 12.90%	11.50%
Tax rate	0.80% - 0.90%	0.85%
Cost of debt	4.60% - 4.90%	4.75%
WACC	9.8% - 12.5%	11.1%

WACC

TRY.L WACC calculation

Category	Low	High

Long-term bond rate	4.0%	4.5%
Equity market risk premium	6.0%	7.0%
Adjusted beta	1.02	1.13

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.10%	12.90%

Tax rate	0.80%	0.90%
Debt/Equity ratio	0.06	0.06
Cost of debt	4.60%	4.90%

After-tax WACC	9.8%	12.5%


Selected WACC	11.1%

TRY.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 TRY.L:

cost_of_equity (11.50%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (1.02) + 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.