PSON.L
Pearson PLC
Price:  
1,237.50 
GBP
Volume:  
1,480,324.00
United Kingdom | Media
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PSON.L WACC - Weighted Average Cost of Capital

The WACC of Pearson PLC (PSON.L) is 7.9%.

The Cost of Equity of Pearson PLC (PSON.L) is 8.50%.
The Cost of Debt of Pearson PLC (PSON.L) is 4.55%.

Range Selected
Cost of equity 7.40% - 9.60% 8.50%
Tax rate 14.10% - 18.00% 16.05%
Cost of debt 4.20% - 4.90% 4.55%
WACC 6.9% - 8.9% 7.9%
WACC

PSON.L WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.57 0.66
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.40% 9.60%
Tax rate 14.10% 18.00%
Debt/Equity ratio 0.14 0.14
Cost of debt 4.20% 4.90%
After-tax WACC 6.9% 8.9%
Selected WACC 7.9%