AWK
American Water Works Company Inc
Price:  
129.59 
USD
Volume:  
735,033.00
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 6.3%.

The Cost of Equity of American Water Works Company Inc (AWK) is 7.65%.
The Cost of Debt of American Water Works Company Inc (AWK) is 4.40%.

Range Selected
Cost of equity 6.60% - 8.70% 7.65%
Tax rate 22.20% - 23.10% 22.65%
Cost of debt 4.00% - 4.80% 4.40%
WACC 5.5% - 7.1% 6.3%
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 0.61 0.69
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.60% 8.70%
Tax rate 22.20% 23.10%
Debt/Equity ratio 0.49 0.49
Cost of debt 4.00% 4.80%
After-tax WACC 5.5% 7.1%
Selected WACC 6.3%