The WACC of Alibaba Group Holding Ltd (BABA) is 7.8%.
Range | Selected | |
Cost of equity | 7.20% - 9.50% | 8.35% |
Tax rate | 17.60% - 19.50% | 18.55% |
Cost of debt | 4.00% - 4.50% | 4.25% |
WACC | 6.8% - 8.9% | 7.8% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.73 | 0.82 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 7.20% | 9.50% |
Tax rate | 17.60% | 19.50% |
Debt/Equity ratio | 0.12 | 0.12 |
Cost of debt | 4.00% | 4.50% |
After-tax WACC | 6.8% | 8.9% |
Selected WACC | 7.8% | |