BABA
Alibaba Group Holding Ltd
Price:  
102.35 
USD
Volume:  
28,380,764.00
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 8.0%.

The Cost of Equity of Alibaba Group Holding Ltd (BABA) is 8.45%.
The Cost of Debt of Alibaba Group Holding Ltd (BABA) is 4.25%.

Range Selected
Cost of equity 7.30% - 9.60% 8.45%
Tax rate 17.60% - 19.50% 18.55%
Cost of debt 4.00% - 4.50% 4.25%
WACC 6.9% - 9.0% 8.0%
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 0.75 0.84
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.30% 9.60%
Tax rate 17.60% 19.50%
Debt/Equity ratio 0.11 0.11
Cost of debt 4.00% 4.50%
After-tax WACC 6.9% 9.0%
Selected WACC 8.0%