BATS.L
British American Tobacco PLC
Price:  
2,999.00 
GBP
Volume:  
4,417,536.00
United Kingdom | Tobacco
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BATS.L WACC - Weighted Average Cost of Capital

The WACC of British American Tobacco PLC (BATS.L) is 6.0%.

The Cost of Equity of British American Tobacco PLC (BATS.L) is 7.55%.
The Cost of Debt of British American Tobacco PLC (BATS.L) is 4.55%.

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%
WACC

BATS.L WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.44 0.51
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%