The WACC of Alibaba Group Holding Ltd (BABA) is 8.0%.
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% |
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% | |