BBY
Best Buy Co Inc
Price:  
87.60 
USD
Volume:  
2,223,223.00
United States | Specialty Retail
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Best Buy WACC - Weighted Average Cost of Capital

The WACC of Best Buy Co Inc (BBY) is 7.6%.

The Cost of Equity of Best Buy Co Inc (BBY) is 7.85%.
The Cost of Debt of Best Buy Co Inc (BBY) is 4.25%.

Range Selected
Cost of equity 6.50% - 9.20% 7.85%
Tax rate 21.90% - 23.00% 22.45%
Cost of debt 4.00% - 4.50% 4.25%
WACC 6.3% - 8.9% 7.6%
WACC

Best Buy WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.56 0.77
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.50% 9.20%
Tax rate 21.90% 23.00%
Debt/Equity ratio 0.06 0.06
Cost of debt 4.00% 4.50%
After-tax WACC 6.3% 8.9%
Selected WACC 7.6%