GBCI
Glacier Bancorp Inc
Price:  
43.08 
USD
Volume:  
956,625.00
United States | Banks
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GBCI WACC - Weighted Average Cost of Capital

The WACC of Glacier Bancorp Inc (GBCI) is 8.7%.

The Cost of Equity of Glacier Bancorp Inc (GBCI) is 10.50%.
The Cost of Debt of Glacier Bancorp Inc (GBCI) is 5.00%.

Range Selected
Cost of equity 9.00% - 12.00% 10.50%
Tax rate 17.60% - 18.30% 17.95%
Cost of debt 5.00% - 5.00% 5.00%
WACC 7.6% - 9.8% 8.7%
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 1.12 1.28
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.00% 12.00%
Tax rate 17.60% 18.30%
Debt/Equity ratio 0.39 0.39
Cost of debt 5.00% 5.00%
After-tax WACC 7.6% 9.8%
Selected WACC 8.7%

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 (10.50%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.12) + 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.