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