GCI
Gannett Co Inc
Price:  
3.71 
USD
Volume:  
2,218,110.00
United States | Media
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GCI WACC - Weighted Average Cost of Capital

The WACC of Gannett Co Inc (GCI) is 9.0%.

The Cost of Equity of Gannett Co Inc (GCI) is 10.20%.
The Cost of Debt of Gannett Co Inc (GCI) is 11.50%.

Range Selected
Cost of equity 7.70% - 12.70% 10.20%
Tax rate 26.20% - 27.00% 26.60%
Cost of debt 7.40% - 15.60% 11.50%
WACC 6.2% - 11.9% 9.0%
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 0.83 1.41
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.70% 12.70%
Tax rate 26.20% 27.00%
Debt/Equity ratio 1.99 1.99
Cost of debt 7.40% 15.60%
After-tax WACC 6.2% 11.9%
Selected WACC 9.0%

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 (10.20%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.83) + 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.