DRX.L
Drax Group PLC
Price:  
642.00 
GBP
Volume:  
578,028.00
United Kingdom | Independent Power and Renewable Electricity Producers
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DRX.L WACC - Weighted Average Cost of Capital

The WACC of Drax Group PLC (DRX.L) is 7.4%.

The Cost of Equity of Drax Group PLC (DRX.L) is 10.05%.
The Cost of Debt of Drax Group PLC (DRX.L) is 5.20%.

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%
WACC

DRX.L WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.78 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%