The WACC of Allegiant Travel Co (ALGT) is 7.4%.
Range | Selected | |
Cost of equity | 7.50% - 10.60% | 9.05% |
Tax rate | 24.80% - 35.20% | 30.00% |
Cost of debt | 4.00% - 15.60% | 9.80% |
WACC | 4.4% - 10.3% | 7.4% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.79 | 1.03 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 7.50% | 10.60% |
Tax rate | 24.80% | 35.20% |
Debt/Equity ratio | 2.14 | 2.14 |
Cost of debt | 4.00% | 15.60% |
After-tax WACC | 4.4% | 10.3% |
Selected WACC | 7.4% | |