RMG.L
Royal Mail PLC
Price:  
214.00 
GBP
Volume:  
2,937,120.00
United Kingdom | Air Freight & Logistics
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RMG.L WACC - Weighted Average Cost of Capital

The WACC of Royal Mail PLC (RMG.L) is 8.7%.

The Cost of Equity of Royal Mail PLC (RMG.L) is 14.05%.
The Cost of Debt of Royal Mail PLC (RMG.L) is 5.50%.

Range Selected
Cost of equity 11.10% - 17.00% 14.05%
Tax rate 13.20% - 17.50% 15.35%
Cost of debt 4.00% - 7.00% 5.50%
WACC 6.8% - 10.7% 8.7%
WACC

RMG.L WACC calculation

Category Low High
Long-term bond rate 4.4% 4.9%
Equity market risk premium 6.4% 7.4%
Adjusted beta 1.03 1.56
Additional risk adjustments 0.0% 0.5%
Cost of equity 11.10% 17.00%
Tax rate 13.20% 17.50%
Debt/Equity ratio 1.28 1.28
Cost of debt 4.00% 7.00%
After-tax WACC 6.8% 10.7%
Selected WACC 8.7%