The WACC of Ally Financial Inc (ALLY) is 6.5%.
Range | Selected | |
Cost of equity | 8.70% - 11.90% | 10.30% |
Tax rate | 17.30% - 21.60% | 19.45% |
Cost of debt | 5.00% - 5.00% | 5.00% |
WACC | 5.9% - 7.0% | 6.5% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 1.06 | 1.26 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 8.70% | 11.90% |
Tax rate | 17.30% | 21.60% |
Debt/Equity ratio | 1.56 | 1.56 |
Cost of debt | 5.00% | 5.00% |
After-tax WACC | 5.9% | 7.0% |
Selected WACC | 6.5% | |