BATS.L
British American Tobacco PLC
Price:  
2,476.00 
GBP
Volume:  
2,322,203.00
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 6.3%.

The Cost of Equity of British American Tobacco PLC (BATS.L) is 8.30%.
The Cost of Debt of British American Tobacco PLC (BATS.L) is 4.55%.

Range Selected
Cost of equity 7.30% - 9.30% 8.30%
Tax rate 25.80% - 26.10% 25.95%
Cost of debt 4.00% - 5.10% 4.55%
WACC 5.5% - 7.0% 6.3%
WACC

BATS.L WACC calculation

Category Low High
Long-term bond rate 3.7% 4.2%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.6 0.65
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.30% 9.30%
Tax rate 25.80% 26.10%
Debt/Equity ratio 0.71 0.71
Cost of debt 4.00% 5.10%
After-tax WACC 5.5% 7.0%
Selected WACC 6.3%