BBY
Best Buy Co Inc
Price:  
73.35 
USD
Volume:  
1,603,753.00
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 7.8%.

The Cost of Equity of Best Buy Co Inc (BBY) is 8.15%.
The Cost of Debt of Best Buy Co Inc (BBY) is 4.30%.

Range Selected
Cost of equity 7.00% - 9.30% 8.15%
Tax rate 21.90% - 23.00% 22.45%
Cost of debt 4.00% - 4.60% 4.30%
WACC 6.7% - 8.9% 7.8%
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 0.67 0.79
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.00% 9.30%
Tax rate 21.90% 23.00%
Debt/Equity ratio 0.07 0.07
Cost of debt 4.00% 4.60%
After-tax WACC 6.7% 8.9%
Selected WACC 7.8%