GBCI
Glacier Bancorp Inc
Price:  
45.83 
USD
Volume:  
856,292.00
United States | Banks
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GBCI WACC - Weighted Average Cost of Capital

The WACC of Glacier Bancorp Inc (GBCI) is 8.6%.

The Cost of Equity of Glacier Bancorp Inc (GBCI) is 10.20%.
The Cost of Debt of Glacier Bancorp Inc (GBCI) is 5.00%.

Range Selected
Cost of equity 8.90% - 11.50% 10.20%
Tax rate 17.60% - 18.30% 17.95%
Cost of debt 5.00% - 5.00% 5.00%
WACC 7.6% - 9.5% 8.6%
WACC

GBCI WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.1 1.19
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.90% 11.50%
Tax rate 17.60% 18.30%
Debt/Equity ratio 0.37 0.37
Cost of debt 5.00% 5.00%
After-tax WACC 7.6% 9.5%
Selected WACC 8.6%

GBCI's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for GBCI:

cost_of_equity (10.20%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.1) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.