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