The WACC of Guidewire Software Inc (GWRE) is 8.0%.
Range | Selected | |
Cost of equity | 6.90% - 9.20% | 8.05% |
Tax rate | 20.80% - 27.40% | 24.10% |
Cost of debt | 4.00% - 7.00% | 5.50% |
WACC | 6.8% - 9.1% | 8.0% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.67 | 0.77 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 6.90% | 9.20% |
Tax rate | 20.80% | 27.40% |
Debt/Equity ratio | 0.03 | 0.03 |
Cost of debt | 4.00% | 7.00% |
After-tax WACC | 6.8% | 9.1% |
Selected WACC | 8.0% | |