The WACC of Caterpillar Inc (CAT) is 8.6%.
Range | Selected | |
Cost of equity | 8.20% - 10.90% | 9.55% |
Tax rate | 22.80% - 24.00% | 23.40% |
Cost of debt | 4.00% - 4.80% | 4.40% |
WACC | 7.4% - 9.7% | 8.6% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.95 | 1.08 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 8.20% | 10.90% |
Tax rate | 22.80% | 24.00% |
Debt/Equity ratio | 0.19 | 0.19 |
Cost of debt | 4.00% | 4.80% |
After-tax WACC | 7.4% | 9.7% |
Selected WACC | 8.6% | |