BWA
Borgwarner Inc
Price:  
31.33 
USD
Volume:  
2,466,819.00
United States | Auto Components
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Borgwarner WACC - Weighted Average Cost of Capital

The WACC of Borgwarner Inc (BWA) is 8.0%.

The Cost of Equity of Borgwarner Inc (BWA) is 10.70%.
The Cost of Debt of Borgwarner Inc (BWA) is 4.30%.

Range Selected
Cost of equity 9.40% - 12.00% 10.70%
Tax rate 26.40% - 31.60% 29.00%
Cost of debt 4.00% - 4.60% 4.30%
WACC 7.1% - 8.9% 8.0%
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 1.2 1.28
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.40% 12.00%
Tax rate 26.40% 31.60%
Debt/Equity ratio 0.54 0.54
Cost of debt 4.00% 4.60%
After-tax WACC 7.1% 8.9%
Selected WACC 8.0%