Partners Group Private EquityLSE:PEY +2.48%31 WACC % is 6.57% as of Jul. 04, 2026, which is 38% above its 10-year median of 4.75. GuruFocus rates LSE:PEY with a GF Score™ of 31/100. The stock has 1 warning sign investors should review. Among 1,650 Asset Management companies, Partners Group Private Equity ranks better than 59.94% on this metric.
As of today (2026-07-04), Partners Group Private Equity's weighted average cost of capital is 6.57%%. Partners Group Private Equity's ROIC % is 0.00% (calculated using TTM income statement data).
Partners Group Private Equity 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.
Partners Group Private Equity (LSE:PEY) WACC % Explanation
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, Partners Group Private Equity's weighted average cost of capital is 6.57%%. Partners Group Private Equity's ROIC % is 0.00% (calculated using TTM income statement data).
Partners Group Private Equity 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.
Related Terms
Partners Group Private Equity 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 Asset Management subindustry, Partners Group Private Equity'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.
Partners Group Private Equity WACC % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Partners Group Private Equity's WACC % distribution charts can be found below:
* The bar in red indicates where Partners Group Private Equity'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, Partners Group Private Equity's market capitalization (E) is €499.339 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 Dec. 2025, Partners Group Private Equity's latest one-year semi-annual average Book Value of Debt (D) is €20 Mil.
a) weight of equity = E / (E + D) = 499.339 / (499.339 + 20) = 0.9615
b) weight of debt = D / (E + D) = 20 / (499.339 + 20) = 0.0385
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 4.485%. 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. Partners Group Private Equity's beta is 0.3686.
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 = 4.485% + 0.3686 * 6% = 6.6966%
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 Dec. 2025, Partners Group Private Equity's interest expense (positive number) was €0.681 Mil. Its total Book Value of Debt (D) is €20 Mil.
Cost of Debt = 0.681 / 20 = 3.405%.
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 = 0.008 / -89.934 = -0.01%, which is less than 0%. Therefore it's set to 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.
Partners Group Private Equity (LSE:PEY) has a WACC % of 6.57% as of Jul. 04, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Partners Group Private Equity and its competitors. This is 38% above median its historical median of 4.75. Over the past decade, Partners Group Private Equity's WACC % has ranged from 2.57 to 9.59. According to the industry distribution chart, Partners Group Private Equity ranks #661 out of 1650 companies in the Asset Management industry, placing it in the top 40.1%.
Is Partners Group Private Equity's WACC % too high?
Partners Group Private Equity's current WACC % of 6.57% is 38% above median its 10-year median of 4.75. Over the past 10 years, this metric has ranged from a low of 2.57 to a high of 9.59. The Asset Management industry median WACC % is 5.69. Partners Group Private Equity's value of 6.57% is 15.5% above this industry median. Based on the distribution chart, Partners Group Private Equity ranks #661 out of 1650 companies in the Asset Management industry, which is above the industry midpoint. Overall, Partners Group Private Equity has a GF Score™ of 31/100, reflecting its overall financial health beyond just this single metric.
How does Partners Group Private Equity's WACC % compare to BLK and BX?
According to the Asset Management industry distribution chart, Partners Group Private Equity ranks #661 out of 1650 companies for WACC %. This puts Partners Group Private Equity in the upper half of its industry. The industry median WACC % is 5.69. Partners Group Private Equity's value of 6.57% is 15.5% above this benchmark. Historically, Partners Group Private Equity's own WACC % has ranged from 2.57 to 9.59 over the past decade. While the company's 10-year median is 4.75 vs. the industry median of 5.69, Partners Group Private Equity 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 Asset Management company?
The median WACC % among Asset Management companies is 5.69, based on 1,650 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. Partners Group Private Equity's current WACC % of 6.57% is 15.5% 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 Partners Group Private Equity and its competitors. For the Asset Management industry, the median WACC % is 5.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Partners Group Private Equity's current WACC % is 6.57%, which is 38% above median its own 10-year median of 4.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Partners Group Private Equity stock overvalued right now?
Partners Group Private Equity (LSE:PEY) has a current WACC % of 6.57%. The current WACC % is 6.57%, which is 38% above median its 10-year median of 4.75 and 15.5% above the Asset Management industry median of 5.69. Partners Group Private Equity's overall GF Score™ is 31/100 with 1 warning sign 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 Partners Group Private Equity (LSE:PEY), the current WACC % is 6.57% as of Jul. 04, 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.
Partners Group Private Equity Business Description
Partners Group Private Equity Ltd is a closed-ended investment company. The company's investment objective is to provide Shareholders with long-term capital growth and an attractive dividend yield through investment in a diversified portfolio of private equity direct investments. The operating segments are reported internally across the Partners Group platform as private equity, private credit, private real estate, private infrastructure, private resources and private markets royalties.
31GF Score
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