GSK.L
GlaxoSmithKline PLC
Price:  
1,329.50 
GBP
Volume:  
5,497,110.00
United Kingdom | Pharmaceuticals
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GSK.L WACC - Weighted Average Cost of Capital

The WACC of GlaxoSmithKline PLC (GSK.L) is 8.6%.

The Cost of Equity of GlaxoSmithKline PLC (GSK.L) is 10.10%.
The Cost of Debt of GlaxoSmithKline PLC (GSK.L) is 4.35%.

Range Selected
Cost of equity 8.80% - 11.40% 10.10%
Tax rate 8.40% - 12.50% 10.45%
Cost of debt 4.00% - 4.70% 4.35%
WACC 7.5% - 9.6% 8.6%
WACC

GSK.L WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.81 0.92
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.80% 11.40%
Tax rate 8.40% 12.50%
Debt/Equity ratio 0.33 0.33
Cost of debt 4.00% 4.70%
After-tax WACC 7.5% 9.6%
Selected WACC 8.6%