CAT
Caterpillar Inc
Price:  
381.50 
USD
Volume:  
1,839,186.00
United States | Machinery
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Caterpillar WACC - Weighted Average Cost of Capital

The WACC of Caterpillar Inc (CAT) is 8.9%.

The Cost of Equity of Caterpillar Inc (CAT) is 10.05%.
The Cost of Debt of Caterpillar Inc (CAT) is 4.40%.

Range Selected
Cost of equity 8.80% - 11.30% 10.05%
Tax rate 22.80% - 24.00% 23.40%
Cost of debt 4.00% - 4.80% 4.40%
WACC 7.8% - 10.0% 8.9%
WACC

Caterpillar WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.06 1.15
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.80% 11.30%
Tax rate 22.80% 24.00%
Debt/Equity ratio 0.2 0.2
Cost of debt 4.00% 4.80%
After-tax WACC 7.8% 10.0%
Selected WACC 8.9%