CAT
Caterpillar Inc
Price:  
350.48 
USD
Volume:  
1,894,301.00
United States | Machinery
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Caterpillar WACC - Weighted Average Cost of Capital

The WACC of Caterpillar Inc (CAT) is 8.3%.

The Cost of Equity of Caterpillar Inc (CAT) is 9.40%.
The Cost of Debt of Caterpillar Inc (CAT) is 4.55%.

Range Selected
Cost of equity 8.00% - 10.80% 9.40%
Tax rate 22.80% - 24.00% 23.40%
Cost of debt 4.00% - 5.10% 4.55%
WACC 7.1% - 9.5% 8.3%
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 0.9 1.05
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.00% 10.80%
Tax rate 22.80% 24.00%
Debt/Equity ratio 0.22 0.22
Cost of debt 4.00% 5.10%
After-tax WACC 7.1% 9.5%
Selected WACC 8.3%