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