As of today (2026-06-29), Downing Renewables & Infrastructure Trust's weighted average cost of capital is 10.94%%. Downing Renewables & Infrastructure Trust's ROIC % is 0.00% (calculated using TTM income statement data).
Downing Renewables & Infrastructure Trust earns returns that do not match up to its cost of capital. It will destroy value as it grows.
*Note: The beta of this company cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
For a comprehensive WACC calculation, please access the WACC Calculator.
Because it costs money to raise capital. A firm that generates higher ROIC % than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Downing Renewables & Infrastructure Trust's weighted average cost of capital is 10.94%%. Downing Renewables & Infrastructure Trust's ROIC % is 0.00% (calculated using TTM income statement data).
Downing Renewables & Infrastructure Trust earns returns that do not match up to its cost of capital. It will destroy value as it grows.
*Note: The beta of this company cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
Be Aware
1. GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding latest one-year semi-annual average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together.
For companies that report quarterly, GuruFocus combines all of the most recent year's quarterly debt data from the beginning of the year to the year-end and calculates the average.
For companies that report semi-annually, GuruFocus combines all of the most recent year's semi-annual debt data from the start of the year to the year-end and calculates the average.
For companies that report annually, GuruFocus combines the beginning and ending annual debt data from the most recent year and then calculates the average.
2. The WACC formula discussed above does not include Preferred Stock. Please adjust if preferred stock is considered.
3. (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
4. GuruFocus uses the latest TTM Interest Expense divided by the latest one-year semi-annual average debt to get the simplified cost of debt.
Related Terms
Downing Renewables & Infrastructure Trust WACC % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Utilities - Renewable subindustry, Downing Renewables & Infrastructure Trust's WACC %, along with its competitors' market caps and WACC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Downing Renewables & Infrastructure Trust WACC % vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Downing Renewables & Infrastructure Trust's WACC % distribution charts can be found below:
* The bar in red indicates where Downing Renewables & Infrastructure Trust's WACC % falls into.
The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. The WACC is commonly referred to as the firm's cost of capital. Generally speaking, a company's assets are financed by debt and equity. WACC is the average of the costs of these sources of financing, each of which is weighted by its respective use in the given situation. By taking a weighted average, we can see how much interest the company has to pay for every dollar it finances.
WACC
=
E
/
(E + D)
*
Cost of Equity
+
D
/
(E + D)
*
Cost of Debt
*
(1 - Tax Rate)
1. Weights:
Generally speaking, a company's assets are financed by debt and equity. We need to calculate the weight of equity and the weight of debt.
The market value of equity (E) is also called "Market Cap". As of today, Downing Renewables & Infrastructure Trust's market capitalization (E) is £173.527 Mil.
The market value of debt is typically difficult to calculate, therefore, GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding the latest one-year semi-annual average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Jun. 2025, Downing Renewables & Infrastructure Trust's latest one-year semi-annual average Book Value of Debt (D) is £0 Mil.
a) weight of equity = E / (E + D) = 173.527 / (173.527 + 0) = 1
b) weight of debt = D / (E + D) = 0 / (173.527 + 0) = 0
2. Cost of Equity:
GuruFocus uses Capital Asset Pricing Model (CAPM) to calculate the required rate of return. The formula is:
Cost of Equity = Risk-Free Rate of Return + Beta of Asset * (Expected Return of the Market - Risk-Free Rate of Return)
a) GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate. It is updated daily. The current risk-free rate is 4.9416%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default.
b) Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. Downing Renewables & Infrastructure Trust's beta cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
c) (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
Cost of Equity = 4.9416% + 1 * 6% = 10.9416%
3. Cost of Debt:
GuruFocus uses latest TTM Interest Expense divided by the latest one-year semi-annual average debt to get the simplified cost of debt.
As of Jun. 2025, Downing Renewables & Infrastructure Trust's interest expense (positive number) was £-0 Mil. Its total Book Value of Debt (D) is £0 Mil.
Cost of Debt = -0 / 0 = %.
4. Multiply by one minus TTM Tax Rate:
GuruFocus uses the most recent TTM Tax Expense divided by the most recent TTM Pre-Tax Income to calculate the tax rate. The calculated TTM tax rate is limited to between 0% and 100%. If the calculated tax rate is higher than 100%, it is set to 100%. If the calculated tax rate is less than 0%, it is set to 0%.
The latest calculated TTM Tax Rate = 0 / -3.939 = 0%.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Downing Renewables & Infrastructure Trust (CHIX:DOREL) has a WACC % of 10.94% as of Jun. 29, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Downing Renewables & Infrastructure Trust and its competitors. This is 115% above median its historical median of 5.09. Over the past decade, Downing Renewables & Infrastructure Trust's WACC % has ranged from 4.24 to 10.94.
Is Downing Renewables & Infrastructure Trust's WACC % too high?
Downing Renewables & Infrastructure Trust's current WACC % of 10.94% is 115% above median its 10-year median of 5.09. Over the past 10 years, this metric has ranged from a low of 4.24 to a high of 10.94. The Utilities - Independent Power Producers industry median WACC % is 7.78. Downing Renewables & Infrastructure Trust's value of 10.94% is 40.6% above this industry median. Overall, Downing Renewables & Infrastructure Trust has a GF Score™ of 20/100, reflecting its overall financial health beyond just this single metric.
How does Downing Renewables & Infrastructure Trust's WACC % compare to CEG?
Downing Renewables & Infrastructure Trust's WACC % of 10.94% can be compared against companies in the Utilities - Independent Power Producers industry. The industry median WACC % is 7.78. Downing Renewables & Infrastructure Trust's value of 10.94% is 40.6% above this benchmark. Historically, Downing Renewables & Infrastructure Trust's own WACC % has ranged from 4.24 to 10.94 over the past decade. While the company's 10-year median is 5.09 vs. the industry median of 7.78, Downing Renewables & Infrastructure Trust has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good WACC % for an Utilities - Independent Power Producers company?
The median WACC % among Utilities - Independent Power Producers companies is 7.78, based on 477 companies in the industry. Companies in the top quartile (top 25%) have a WACC % significantly above this median, while those in the bottom quartile fall well below. However, WACC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Downing Renewables & Infrastructure Trust's current WACC % of 10.94% is 40.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high WACC % mean?
A high WACC % can signal that a stock is expensive relative to its fundamentals. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Downing Renewables & Infrastructure Trust and its competitors. For the Utilities - Independent Power Producers industry, the median WACC % is 7.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Downing Renewables & Infrastructure Trust's current WACC % is 10.94%, which is 115% above median its own 10-year median of 5.09. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Downing Renewables & Infrastructure Trust stock overvalued right now?
Downing Renewables & Infrastructure Trust (CHIX:DOREL) has a current WACC % of 10.94%. The stock's GF Value™ is £0.19, compared to a current price of £0.82 — trading 331.6% above its estimated fair value. The current WACC % is 10.94%, which is 115% above median its 10-year median of 5.09 and 40.6% above the Utilities - Independent Power Producers industry median of 7.78. Downing Renewables & Infrastructure Trust's overall GF Score™ is 20/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is WACC % calculated?
WACC % is calculated from a company's financial statements. For Downing Renewables & Infrastructure Trust (CHIX:DOREL), the current WACC % is 10.94% as of Jun. 29, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Downing Renewables & Infrastructure Trust (CHIX:DOREL) Overvalued in 2026?
Based on GuruFocus' analysis, Downing Renewables & Infrastructure Trust stock appears to be overvalued.
The current stock price of £0.82 is trading 331.6% above its estimated GF Value™ of £0.19.
Key valuation signals for CHIX:DOREL:
WACC %: 10.94% (115% above median its 10-year median of 5.09)
GF Value™: £0.19 vs. price of £0.82 (331.6% above fair value)
Industry Position: 40.6% above the Utilities - Independent Power Producers median
No single metric tells the full story. See the CHIX:DOREL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Downing Renewables & Infrastructure Trust Business Description
Downing Renewables & Infrastructure Trust PLC is a closed-end asset management company. The group is designed to provide investors with an attractive and sustainable level of income, with an element of capital growth, by investing in a diversified portfolio of renewable energy and infrastructure assets in the UK, Ireland, and Northern Europe. It focuses on diversification by geography, technology, revenue, and project stage, and is designed to deliver stability of revenues and consistency of income to shareholders. The sustainable Investment objective of the Company is to accelerate the transition to net zero through its investments, compiling and operating a diversified portfolio of renewable energy and infrastructure assets to help facilitate the transition to a more sustainable future.
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