GCI
Gannett Co Inc
Price:  
3.15 
USD
Volume:  
977,766.00
United States | Media
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GCI WACC - Weighted Average Cost of Capital

The WACC of Gannett Co Inc (GCI) is 8.3%.

The Cost of Equity of Gannett Co Inc (GCI) is 7.95%.
The Cost of Debt of Gannett Co Inc (GCI) is 11.50%.

Range Selected
Cost of equity 6.20% - 9.70% 7.95%
Tax rate 26.20% - 27.00% 26.60%
Cost of debt 7.40% - 15.60% 11.50%
WACC 5.7% - 10.9% 8.3%
WACC

GCI WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.5 0.87
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.20% 9.70%
Tax rate 26.20% 27.00%
Debt/Equity ratio 2.32 2.32
Cost of debt 7.40% 15.60%
After-tax WACC 5.7% 10.9%
Selected WACC 8.3%

GCI'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 GCI:

cost_of_equity (7.95%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.5) + 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.