BBY
Best Buy Co Inc
Price:  
89.33 
USD
Volume:  
2,307,851.00
United States | Specialty Retail
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

Best Buy WACC - Weighted Average Cost of Capital

The WACC of Best Buy Co Inc (BBY) is 7.7%.

The Cost of Equity of Best Buy Co Inc (BBY) is 7.95%.
The Cost of Debt of Best Buy Co Inc (BBY) is 4.30%.

Range Selected
Cost of equity 6.70% - 9.20% 7.95%
Tax rate 21.90% - 23.00% 22.45%
Cost of debt 4.00% - 4.60% 4.30%
WACC 6.5% - 8.8% 7.7%
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 0.61 0.76
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.70% 9.20%
Tax rate 21.90% 23.00%
Debt/Equity ratio 0.06 0.06
Cost of debt 4.00% 4.60%
After-tax WACC 6.5% 8.8%
Selected WACC 7.7%