The WACC of British American Tobacco PLC (BATS.L) is 6.0%.
Range | Selected | |
Cost of equity | 6.60% - 8.50% | 7.55% |
Tax rate | 25.80% - 26.10% | 25.95% |
Cost of debt | 4.00% - 5.10% | 4.55% |
WACC | 5.3% - 6.7% | 6.0% |
Category | Low | High |
Long-term bond rate | 4.0% | 4.5% |
Equity market risk premium | 6.0% | 7.0% |
Adjusted beta | 0.44 | 0.5 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 6.60% | 8.50% |
Tax rate | 25.80% | 26.10% |
Debt/Equity ratio | 0.6 | 0.6 |
Cost of debt | 4.00% | 5.10% |
After-tax WACC | 5.3% | 6.7% |
Selected WACC | 6.0% | |