ADP
Automatic Data Processing Inc
Price:  
302.23 
USD
Volume:  
1,609,640.00
United States | IT Services
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ADP WACC - Weighted Average Cost of Capital

The WACC of Automatic Data Processing Inc (ADP) is 8.0%.

The Cost of Equity of Automatic Data Processing Inc (ADP) is 8.05%.
The Cost of Debt of Automatic Data Processing Inc (ADP) is 5.40%.

Range Selected
Cost of equity 7.00% - 9.10% 8.05%
Tax rate 22.70% - 22.80% 22.75%
Cost of debt 4.50% - 6.30% 5.40%
WACC 6.9% - 9.0% 8.0%
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 0.68 0.76
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.00% 9.10%
Tax rate 22.70% 22.80%
Debt/Equity ratio 0.02 0.02
Cost of debt 4.50% 6.30%
After-tax WACC 6.9% 9.0%
Selected WACC 8.0%