ADP
Automatic Data Processing Inc
Price:  
289.86 
USD
Volume:  
1,182,645.00
United States | IT Services
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ADP WACC - Weighted Average Cost of Capital

The WACC of Automatic Data Processing Inc (ADP) is 7.6%.

The Cost of Equity of Automatic Data Processing Inc (ADP) is 7.65%.
The Cost of Debt of Automatic Data Processing Inc (ADP) is 5.40%.

Range Selected
Cost of equity 6.60% - 8.70% 7.65%
Tax rate 22.70% - 22.80% 22.75%
Cost of debt 4.50% - 6.30% 5.40%
WACC 6.5% - 8.6% 7.6%
WACC

ADP WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.6 0.69
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.60% 8.70%
Tax rate 22.70% 22.80%
Debt/Equity ratio 0.03 0.03
Cost of debt 4.50% 6.30%
After-tax WACC 6.5% 8.6%
Selected WACC 7.6%