BWA
Borgwarner Inc
Price:  
32.29 
USD
Volume:  
2,114,141.00
United States | Auto Components
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Borgwarner WACC - Weighted Average Cost of Capital

The WACC of Borgwarner Inc (BWA) is 7.8%.

The Cost of Equity of Borgwarner Inc (BWA) is 10.05%.
The Cost of Debt of Borgwarner Inc (BWA) is 4.30%.

Range Selected
Cost of equity 8.50% - 11.60% 10.05%
Tax rate 26.40% - 31.60% 29.00%
Cost of debt 4.00% - 4.60% 4.30%
WACC 6.7% - 8.9% 7.8%
WACC

Borgwarner WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.01 1.21
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.50% 11.60%
Tax rate 26.40% 31.60%
Debt/Equity ratio 0.49 0.49
Cost of debt 4.00% 4.60%
After-tax WACC 6.7% 8.9%
Selected WACC 7.8%