DGE.L
Diageo PLC
Price:  
2,445.50 
GBP
Volume:  
2,835,703.00
United Kingdom | Beverages
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DGE.L WACC - Weighted Average Cost of Capital

The WACC of Diageo PLC (DGE.L) is 8.7%.

The Cost of Equity of Diageo PLC (DGE.L) is 10.80%.
The Cost of Debt of Diageo PLC (DGE.L) is 4.60%.

Range Selected
Cost of equity 8.60% - 13.00% 10.80%
Tax rate 23.80% - 24.10% 23.95%
Cost of debt 4.00% - 5.20% 4.60%
WACC 7.0% - 10.4% 8.7%
WACC

DGE.L WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.77 1.15
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.60% 13.00%
Tax rate 23.80% 24.10%
Debt/Equity ratio 0.41 0.41
Cost of debt 4.00% 5.20%
After-tax WACC 7.0% 10.4%
Selected WACC 8.7%