The WACC of Drax Group PLC (DRX.L) is 7.4%.
Range | Selected | |
Cost of equity | 8.60% - 11.50% | 10.05% |
Tax rate | 24.60% - 32.90% | 28.75% |
Cost of debt | 4.90% - 5.50% | 5.20% |
WACC | 6.6% - 8.2% | 7.4% |
Category | Low | High |
Long-term bond rate | 4.0% | 4.5% |
Equity market risk premium | 6.0% | 7.0% |
Adjusted beta | 0.78 | 0.93 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 8.60% | 11.50% |
Tax rate | 24.60% | 32.90% |
Debt/Equity ratio | 0.72 | 0.72 |
Cost of debt | 4.90% | 5.50% |
After-tax WACC | 6.6% | 8.2% |
Selected WACC | 7.4% | |