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WACC for GSK plc DRC

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GSK: GSK plc DRC

GSK plc, together with its subsidiaries, engages in the research, development, and manufacture of vaccines, and specialty and general medicines to prevent and treat disease in the United Kingdom, the ...

38.58 USD
Price
USD
Fair Value
Upside
31.71 - 45.92
52-week range

Analysis

Fiscal Years
Trailing Twelve Months
Fiscal Halfs
Fiscal Quarters
Daily
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The following section summarizes insights on GSK plc DRC's WACC:

GSKHLTH.GBAZN0QLR0QOK0O59LABB6.0%8.0%10.0%12.0%

Performance Summary
  • GSK plc DRC's wacc is 7.8%

How does GSK plc DRC's WACC benchmark against competitors?

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We've identified the following companies as similar to GSK plc DRC because they operate in a related industry or sector. We also considered size, growth, and various financial metrics to narrow down the list to the ones listed below.

Metric Usage: WACC

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WACC

Our estimate of the weighted average cost of capital for a company.

Definition of WACC

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The Weighted Average Cost of Capital or WACC is a discount rate used to find the present value a company’s future cash flows that is applied in various Discounted Cash Flow (DCF) analyses. Broadly speaking, a company’s assets are financed by either debt or equity. The WACC is the average of these sources of financing, each of which is weighted by its respective use.

WACC can also be described as the weighted average rate of return a firm theoretically pays to its debt and equity providers to compensate for the risk they undertake by investing their capital.

We estimate WACC using the Capital Asset Pricing Model (CAPM).

How to calculate the WACC:

  Total Capital = Debt + Equity

  WACC =
      (Equity / Total Capital) * Cost of Equity
    + (Debt / Total Capital) * Cost of Debt * (1 - Tax Rate)

Sector Benchmark Analysis

Sector
Industry Group
Industry
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7.9%11.9%15.9%22.8%0100200300

The chart above depicts the distribution of wacc for companies operating in the Healthcare sector in the Developed economic region. Over 2,520 companies were considered in this analysis, and 2,456 had meaningful values. The average wacc of companies in the sector is 10.7% with a standard deviation of 2.6%.

GSK plc DRC's WACC of 7.8% is significantly outside the interquartile range and is excluded from the distribution. The following table provides additional summary stats:

WACC In The Healthcare Sector
Economic Risk RegionDeveloped
Total Constituents2,529
Included Constituents2,456
Min7.8%
Max22.8%
Median10.0%
Mean10.7%
Standard Deviation2.6%

You can find companies with similar wacc using this stock screener.

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