AIR
AAR Corp
Price:  
66.62 
USD
Volume:  
306,456.00
United States | Aerospace & Defense
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

AAR WACC - Weighted Average Cost of Capital

The WACC of AAR Corp (AIR) is 7.7%.

The Cost of Equity of AAR Corp (AIR) is 8.15%.
The Cost of Debt of AAR Corp (AIR) is 5.05%.

Range Selected
Cost of equity 7.10% - 9.20% 8.15%
Tax rate 22.60% - 25.50% 24.05%
Cost of debt 4.90% - 5.20% 5.05%
WACC 6.8% - 8.7% 7.7%
WACC

AAR WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.71 0.78
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.10% 9.20%
Tax rate 22.60% 25.50%
Debt/Equity ratio 0.12 0.12
Cost of debt 4.90% 5.20%
After-tax WACC 6.8% 8.7%
Selected WACC 7.7%