BBY.L
Balfour Beatty PLC
Price:  
462.00 
GBP
Volume:  
853,111.00
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 7.5%.

The Cost of Equity of Balfour Beatty PLC (BBY.L) is 9.10%.
The Cost of Debt of Balfour Beatty PLC (BBY.L) is 4.95%.

Range Selected
Cost of equity 7.80% - 10.40% 9.10%
Tax rate 13.70% - 27.30% 20.50%
Cost of debt 4.60% - 5.30% 4.95%
WACC 6.7% - 8.4% 7.5%
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 0.64 0.77
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.80% 10.40%
Tax rate 13.70% 27.30%
Debt/Equity ratio 0.43 0.43
Cost of debt 4.60% 5.30%
After-tax WACC 6.7% 8.4%
Selected WACC 7.5%