BABA
Alibaba Group Holding Ltd
Price:  
87.37 
USD
Volume:  
7,547,294.00
China | Internet & Direct Marketing Retail
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Alibaba WACC - Weighted Average Cost of Capital

The WACC of Alibaba Group Holding Ltd (BABA) is 7.8%.

The Cost of Equity of Alibaba Group Holding Ltd (BABA) is 8.35%.
The Cost of Debt of Alibaba Group Holding Ltd (BABA) is 4.25%.

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%
WACC

Alibaba 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 0.82
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%