GPS
Gap Inc
Price:  
24.55 
USD
Volume:  
7,170,549.00
United States | Specialty Retail
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

Gap WACC - Weighted Average Cost of Capital

The WACC of Gap Inc (GPS) is 10.6%.

The Cost of Equity of Gap Inc (GPS) is 11.65%.
The Cost of Debt of Gap Inc (GPS) is 5.90%.

Range Selected
Cost of equity 10.10% - 13.20% 11.65%
Tax rate 27.20% - 28.10% 27.65%
Cost of debt 4.60% - 7.20% 5.90%
WACC 9.1% - 12.1% 10.6%
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 1.35 1.48
Additional risk adjustments 0.0% 0.5%
Cost of equity 10.10% 13.20%
Tax rate 27.20% 28.10%
Debt/Equity ratio 0.16 0.16
Cost of debt 4.60% 7.20%
After-tax WACC 9.1% 12.1%
Selected WACC 10.6%