The WACC of Commonwealth Bank of Australia (CBA.AX) is 6.5%.
Range | Selected | |
Cost of equity | 7.80% - 10.00% | 8.90% |
Tax rate | 29.00% - 29.20% | 29.10% |
Cost of debt | 5.00% - 5.00% | 5.00% |
WACC | 5.9% - 7.1% | 6.5% |
Category | Low | High |
Long-term bond rate | 4.0% | 4.5% |
Equity market risk premium | 5.1% | 6.1% |
Adjusted beta | 0.75 | 0.82 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 7.80% | 10.00% |
Tax rate | 29.00% | 29.20% |
Debt/Equity ratio | 0.84 | 0.84 |
Cost of debt | 5.00% | 5.00% |
After-tax WACC | 5.9% | 7.1% |
Selected WACC | 6.5% | |