The WACC of Severn Trent PLC (SVT.L) is 6.5%.
Range | Selected | |
Cost of equity | 8.20% - 10.20% | 9.20% |
Tax rate | 26.70% - 37.80% | 32.25% |
Cost of debt | 4.00% - 7.60% | 5.80% |
WACC | 5.5% - 7.5% | 6.5% |
Category | Low | High |
Long-term bond rate | 4.0% | 4.5% |
Equity market risk premium | 6.0% | 7.0% |
Adjusted beta | 0.7 | 0.74 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 8.20% | 10.20% |
Tax rate | 26.70% | 37.80% |
Debt/Equity ratio | 1 | 1 |
Cost of debt | 4.00% | 7.60% |
After-tax WACC | 5.5% | 7.5% |
Selected WACC | 6.5% | |