WPP.L
WPP PLC
Price:  
881.80 
GBP
Volume:  
3,850,468.00
United Kingdom | Media
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WPP.L WACC - Weighted Average Cost of Capital

The WACC of WPP PLC (WPP.L) is 8.5%.

The Cost of Equity of WPP PLC (WPP.L) is 11.25%.
The Cost of Debt of WPP PLC (WPP.L) is 6.60%.

Range Selected
Cost of equity 10.00% - 12.50% 11.25%
Tax rate 24.00% - 27.80% 25.90%
Cost of debt 4.00% - 9.20% 6.60%
WACC 7.1% - 10.0% 8.5%
WACC

WPP.L WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 1.01 1.07
Additional risk adjustments 0.0% 0.5%
Cost of equity 10.00% 12.50%
Tax rate 24.00% 27.80%
Debt/Equity ratio 0.74 0.74
Cost of debt 4.00% 9.20%
After-tax WACC 7.1% 10.0%
Selected WACC 8.5%