GPS
Gap Inc
Price:  
20.98 
USD
Volume:  
6,041,864.00
United States | Specialty Retail
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Gap WACC - Weighted Average Cost of Capital

The WACC of Gap Inc (GPS) is 10.3%.

The Cost of Equity of Gap Inc (GPS) is 11.45%.
The Cost of Debt of Gap Inc (GPS) is 6.15%.

Range Selected
Cost of equity 9.90% - 13.00% 11.45%
Tax rate 27.20% - 28.10% 27.65%
Cost of debt 5.10% - 7.20% 6.15%
WACC 8.9% - 11.7% 10.3%
WACC

Gap WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.31 1.44
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.90% 13.00%
Tax rate 27.20% 28.10%
Debt/Equity ratio 0.19 0.19
Cost of debt 5.10% 7.20%
After-tax WACC 8.9% 11.7%
Selected WACC 10.3%