AAL
American Airlines Group Inc
Price:  
10.80 
USD
Volume:  
38,437,350.00
United States | Airlines
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AAL WACC - Weighted Average Cost of Capital

The WACC of American Airlines Group Inc (AAL) is 8.4%.

The Cost of Equity of American Airlines Group Inc (AAL) is 17.40%.
The Cost of Debt of American Airlines Group Inc (AAL) is 8.65%.

Range Selected
Cost of equity 14.80% - 20.00% 17.40%
Tax rate 24.10% - 25.80% 24.95%
Cost of debt 4.90% - 12.40% 8.65%
WACC 5.7% - 11.1% 8.4%
WACC

AAL WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 2.37 2.69
Additional risk adjustments 0.0% 0.5%
Cost of equity 14.80% 20.00%
Tax rate 24.10% 25.80%
Debt/Equity ratio 4.72 4.72
Cost of debt 4.90% 12.40%
After-tax WACC 5.7% 11.1%
Selected WACC 8.4%