AIR
AAR Corp
Price:  
67.64 
USD
Volume:  
252,039.00
United States | Aerospace & Defense
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AAR WACC - Weighted Average Cost of Capital

The WACC of AAR Corp (AIR) is 7.6%.

The Cost of Equity of AAR Corp (AIR) is 8.95%.
The Cost of Debt of AAR Corp (AIR) is 5.80%.

Range Selected
Cost of equity 7.70% - 10.20% 8.95%
Tax rate 23.40% - 25.50% 24.45%
Cost of debt 5.30% - 6.30% 5.80%
WACC 6.6% - 8.6% 7.6%
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 0.83 0.95
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.70% 10.20%
Tax rate 23.40% 25.50%
Debt/Equity ratio 0.41 0.41
Cost of debt 5.30% 6.30%
After-tax WACC 6.6% 8.6%
Selected WACC 7.6%