The WACC of Bright Horizons Family Solutions Inc (BFAM) is 8.9%.
Range | Selected | |
Cost of equity | 8.10% - 11.10% | 9.60% |
Tax rate | 25.70% - 32.00% | 28.85% |
Cost of debt | 4.40% - 7.00% | 5.70% |
WACC | 7.5% - 10.3% | 8.9% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.92 | 1.11 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 8.10% | 11.10% |
Tax rate | 25.70% | 32.00% |
Debt/Equity ratio | 0.13 | 0.13 |
Cost of debt | 4.40% | 7.00% |
After-tax WACC | 7.5% | 10.3% |
Selected WACC | 8.9% | |