BBY.L
Balfour Beatty PLC
Price:  
448.40 
GBP
Volume:  
618,079.00
United Kingdom | Construction & Engineering
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BBY.L WACC - Weighted Average Cost of Capital

The WACC of Balfour Beatty PLC (BBY.L) is 7.9%.

The Cost of Equity of Balfour Beatty PLC (BBY.L) is 9.60%.
The Cost of Debt of Balfour Beatty PLC (BBY.L) is 4.95%.

Range Selected
Cost of equity 8.50% - 10.70% 9.60%
Tax rate 13.70% - 27.30% 20.50%
Cost of debt 4.60% - 5.30% 4.95%
WACC 7.1% - 8.6% 7.9%
WACC

BBY.L WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.75 0.81
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.50% 10.70%
Tax rate 13.70% 27.30%
Debt/Equity ratio 0.44 0.44
Cost of debt 4.60% 5.30%
After-tax WACC 7.1% 8.6%
Selected WACC 7.9%