Question 1

What is Burford Capital Limited's WACC?

Accepted Answer

Burford Capital Limited (BUR) has a Weighted Average Cost of Capital (WACC) of 7.47%. This is calculated using a Cost of Equity of 8.85% (via CAPM with a beta of 1.00) and a pre-tax Cost of Debt of 6.94%, with an equity weight of 27.70% in the capital structure.

Question 2

Is Burford Capital Limited's WACC high or low?

Accepted Answer

Burford Capital Limited's WACC of 7.47% is below the typical range of 8-12% for most companies, indicating relatively low cost of capital and lower risk. WACC is used as the discount rate in DCF valuations — a lower WACC results in higher present values of future cash flows.

Question 3

How is Burford Capital Limited's WACC calculated?

Accepted Answer

Burford Capital Limited's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.85% is derived from the CAPM model using a beta of 1.00. The pre-tax Cost of Debt (Rd) is 6.94%. The capital structure is 27.70% equity and 72.30% debt.

Burford Capital Limited (BUR) — WACC 分析

WACC 构成

解读

Burford Capital Limited（BUR）WACC：7.47%

WACC计算器

Burford Capital Limited（BUR） WACC 解读

BUR 公司分析

BUR DCF 估值

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