AWK
American Water Works Company Inc
Price:  
123.85 
USD
Volume:  
1,350,943.00
United States | Water Utilities
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AWK WACC - Weighted Average Cost of Capital

The WACC of American Water Works Company Inc (AWK) is 6.6%.

The Cost of Equity of American Water Works Company Inc (AWK) is 8.15%.
The Cost of Debt of American Water Works Company Inc (AWK) is 4.40%.

Range Selected
Cost of equity 7.20% - 9.10% 8.15%
Tax rate 22.20% - 23.10% 22.65%
Cost of debt 4.00% - 4.80% 4.40%
WACC 5.8% - 7.3% 6.6%
WACC

AWK WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.73 0.76
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.20% 9.10%
Tax rate 22.20% 23.10%
Debt/Equity ratio 0.51 0.51
Cost of debt 4.00% 4.80%
After-tax WACC 5.8% 7.3%
Selected WACC 6.6%