CAT
Caterpillar Inc
Price:  
351.00 
USD
Volume:  
2,771,782.00
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 10.10%.
The Cost of Debt of Caterpillar Inc (CAT) is 4.40%.

Range Selected
Cost of equity 8.70% - 11.50% 10.10%
Tax rate 22.80% - 24.00% 23.40%
Cost of debt 4.00% - 4.80% 4.40%
WACC 7.7% - 10.1% 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 1.05 1.18
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.70% 11.50%
Tax rate 22.80% 24.00%
Debt/Equity ratio 0.22 0.22
Cost of debt 4.00% 4.80%
After-tax WACC 7.7% 10.1%
Selected WACC 8.9%