BWA
Borgwarner Inc
Price:  
30.51 
USD
Volume:  
1,900,373.00
United States | Auto Components
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Borgwarner WACC - Weighted Average Cost of Capital

The WACC of Borgwarner Inc (BWA) is 8.7%.

The Cost of Equity of Borgwarner Inc (BWA) is 11.40%.
The Cost of Debt of Borgwarner Inc (BWA) is 4.65%.

Range Selected
Cost of equity 9.80% - 13.00% 11.40%
Tax rate 20.90% - 27.40% 24.15%
Cost of debt 4.00% - 5.30% 4.65%
WACC 7.5% - 9.8% 8.7%
WACC

Borgwarner WACC calculation

Category Low High
Long-term bond rate 4.2% 4.7%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.23 1.39
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.80% 13.00%
Tax rate 20.90% 27.40%
Debt/Equity ratio 0.53 0.53
Cost of debt 4.00% 5.30%
After-tax WACC 7.5% 9.8%
Selected WACC 8.7%