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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Northern Venture TrustLSE:NVT 32 WACC % is 5.26% as of Aug. 06, 2026, which is 69% above its 10-year median of 3.11. GuruFocus rates LSE:NVT with a GF Score™ of 32/100. The stock has 3 warning signs investors should review. Among 1,656 Asset Management companies, Northern Venture Trust ranks better than 86.53% on this metric.
As of today (2026-08-06), Northern Venture Trust's weighted average cost of capital is 5.26%%. Northern Venture Trust's ROIC % is 0.00% (calculated using TTM income statement data).
Northern Venture Trust earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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, Northern Venture Trust's weighted average cost of capital is 5.26%%. Northern Venture Trust's ROIC % is 0.00% (calculated using TTM income statement data).
Northern Venture Trust earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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.
* 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 Asset Management subindustry, Northern Venture 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.
Northern Venture Trust WACC % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Northern Venture Trust's WACC % distribution charts can be found below:
* The bar in red indicates where Northern Venture 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, Northern Venture Trust's market capitalization (E) is £150.501 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 Mar. 2026, Northern Venture Trust's latest one-year semi-annual average Book Value of Debt (D) is £0 Mil.
a) weight of equity = E / (E + D) = 150.501 / (150.501 + 0) = 1
b) weight of debt = D / (E + D) = 0 / (150.501 + 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 4.796%. 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. Northern Venture Trust's beta is 0.0780.
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 = 4.796% + 0.0780 * 6% = 5.264%
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 Mar. 2026, Northern Venture 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 / -1.387 = 0%.
Northern Venture Trust's Weighted Average Cost Of Capital (WACC) for Today is calculated as:
WACC
=
E / (E + D)
*
Cost of Equity
+
D / (E + D)
*
Cost of Debt
*
(1 - Tax Rate)
=
1
*
5.264%
+
0
*
%
*
(1 - 0%)
=
5.26%
* 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.
Northern Venture Trust (LSE:NVT) has a WACC % of 5.26% as of Aug. 06, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Northern Venture Trust and its competitors. This is 69% above median its historical median of 3.11. Over the past decade, Northern Venture Trust's WACC % has ranged from 0.88 to 6.80. According to the industry distribution chart, Northern Venture Trust ranks #223 out of 1656 companies in the Asset Management industry, placing it in the top 13.5%.
Is Northern Venture Trust's WACC % too high?
Northern Venture Trust's current WACC % of 5.26% is 69% above median its 10-year median of 3.11. Over the past 10 years, this metric has ranged from a low of 0.88 to a high of 6.80. The Asset Management industry median WACC % is 8.91. Northern Venture Trust's value of 5.26% is 40.9% below this industry median. Based on the distribution chart, Northern Venture Trust ranks #223 out of 1656 companies in the Asset Management industry, which is in the top quartile — a strong position relative to peers. Overall, Northern Venture Trust has a GF Score™ of 32/100, reflecting its overall financial health beyond just this single metric.
How does Northern Venture Trust's WACC % compare to BLK and BX?
According to the Asset Management industry distribution chart, Northern Venture Trust ranks #223 out of 1656 companies for WACC %. This places Northern Venture Trust in the top 14% of its industry — outperforming the majority of peers. The industry median WACC % is 8.91. Northern Venture Trust's value of 5.26% is 40.9% below this benchmark. Historically, Northern Venture Trust's own WACC % has ranged from 0.88 to 6.80 over the past decade. While the company's 10-year median is 3.11 vs. the industry median of 8.91, Northern Venture Trust has consistently been below 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 Asset Management company?
The median WACC % among Asset Management companies is 8.91, based on 1,656 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. Northern Venture Trust's current WACC % of 5.26% is 40.9% below 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 Northern Venture Trust and its competitors. For the Asset Management industry, the median WACC % is 8.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Northern Venture Trust's current WACC % is 5.26%, which is 69% above median its own 10-year median of 3.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Northern Venture Trust stock overvalued right now?
Northern Venture Trust (LSE:NVT) has a current WACC % of 5.26%. The current WACC % is 5.26%, which is 69% above median its 10-year median of 3.11 and 40.9% below the Asset Management industry median of 8.91. Northern Venture Trust's overall GF Score™ is 32/100 with 3 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 Northern Venture Trust (LSE:NVT), the current WACC % is 5.26% as of Aug. 06, 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.
Northern Venture Trust PLC is a venture capital trust. The company's principal activity includes making long-term equity and loan investments. Mainly it invests in unquoted companies in the United Kingdom manufacturing and service businesses. Its objective is to provide high long-term tax-free returns to investors through a combination of dividend yield and capital growth. The company's portfolio of investment includes various sectors such as Technology, media, telecommunications, Business services, Healthcare, Oil and gas, Leisure, Consumer, and Industrials.
32GF Score
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