BWA
Borgwarner Inc
Price:  
32.81 
USD
Volume:  
2,159,742.00
United States | Auto Components
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Borgwarner WACC - Weighted Average Cost of Capital

The WACC of Borgwarner Inc (BWA) is 6.8%.

The Cost of Equity of Borgwarner Inc (BWA) is 8.70%.
The Cost of Debt of Borgwarner Inc (BWA) is 4.30%.

Range Selected
Cost of equity 7.50% - 9.90% 8.70%
Tax rate 26.40% - 31.60% 29.00%
Cost of debt 4.00% - 4.60% 4.30%
WACC 5.9% - 7.6% 6.8%
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 0.78 0.89
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.50% 9.90%
Tax rate 26.40% 31.60%
Debt/Equity ratio 0.51 0.51
Cost of debt 4.00% 4.60%
After-tax WACC 5.9% 7.6%
Selected WACC 6.8%