ADS
Alliance Data Systems Corp
Price:  
56.80 
USD
Volume:  
463,839.00
United States | IT Services
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ADS WACC - Weighted Average Cost of Capital

The WACC of Alliance Data Systems Corp (ADS) is 5.2%.

The Cost of Equity of Alliance Data Systems Corp (ADS) is 18.20%.
The Cost of Debt of Alliance Data Systems Corp (ADS) is 4.25%.

Range Selected
Cost of equity 15.00% - 21.40% 18.20%
Tax rate 25.00% - 25.80% 25.40%
Cost of debt 4.00% - 4.50% 4.25%
WACC 4.6% - 5.7% 5.2%
WACC

ADS WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 4.2% 5.2%
Adjusted beta 2.79 3.29
Additional risk adjustments 0.0% 0.5%
Cost of equity 15.00% 21.40%
Tax rate 25.00% 25.80%
Debt/Equity ratio 6.51 6.51
Cost of debt 4.00% 4.50%
After-tax WACC 4.6% 5.7%
Selected WACC 5.2%