The WACC of PepsiCo Inc (PEP) is 6.7%.
Range | Selected | |
Cost of equity | 6.00% - 8.60% | 7.30% |
Tax rate | 19.90% - 20.30% | 20.10% |
Cost of debt | 4.00% - 4.60% | 4.30% |
WACC | 5.5% - 7.8% | 6.7% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.46 | 0.67 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 6.00% | 8.60% |
Tax rate | 19.90% | 20.30% |
Debt/Equity ratio | 0.2 | 0.2 |
Cost of debt | 4.00% | 4.60% |
After-tax WACC | 5.5% | 7.8% |
Selected WACC | 6.7% | |