ADP
Automatic Data Processing Inc
Price:  
242.64 
USD
Volume:  
1,268,396.00
United States | IT Services
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ADP WACC - Weighted Average Cost of Capital

The WACC of Automatic Data Processing Inc (ADP) is 8.4%.

The Cost of Equity of Automatic Data Processing Inc (ADP) is 8.55%.
The Cost of Debt of Automatic Data Processing Inc (ADP) is 4.65%.

Range Selected
Cost of equity 7.40% - 9.70% 8.55%
Tax rate 22.70% - 22.90% 22.80%
Cost of debt 4.60% - 4.70% 4.65%
WACC 7.3% - 9.5% 8.4%
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 0.77 0.85
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.40% 9.70%
Tax rate 22.70% 22.90%
Debt/Equity ratio 0.03 0.03
Cost of debt 4.60% 4.70%
After-tax WACC 7.3% 9.5%
Selected WACC 8.4%