ULVR.L
Unilever PLC
Price:  
4,766.00 
GBP
Volume:  
2,474,692.00
United Kingdom | Personal Care Products
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ULVR.L WACC - Weighted Average Cost of Capital

The WACC of Unilever PLC (ULVR.L) is 8.3%.

The Cost of Equity of Unilever PLC (ULVR.L) is 9.40%.
The Cost of Debt of Unilever PLC (ULVR.L) is 4.35%.

Range Selected
Cost of equity 8.20% - 10.60% 9.40%
Tax rate 23.20% - 23.70% 23.45%
Cost of debt 4.00% - 4.70% 4.35%
WACC 7.2% - 9.3% 8.3%
WACC

ULVR.L WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.7 0.8
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.20% 10.60%
Tax rate 23.20% 23.70%
Debt/Equity ratio 0.22 0.22
Cost of debt 4.00% 4.70%
After-tax WACC 7.2% 9.3%
Selected WACC 8.3%

ULVR.L's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for ULVR.L:

cost_of_equity (9.40%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.7) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.