CMI
Cummins Inc
Price:  
287.01 
USD
Volume:  
659,312.00
United States | Machinery
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Cummins WACC - Weighted Average Cost of Capital

The WACC of Cummins Inc (CMI) is 9.8%.

The Cost of Equity of Cummins Inc (CMI) is 10.85%.
The Cost of Debt of Cummins Inc (CMI) is 4.55%.

Range Selected
Cost of equity 9.30% - 12.40% 10.85%
Tax rate 22.10% - 22.50% 22.30%
Cost of debt 4.00% - 5.10% 4.55%
WACC 8.4% - 11.1% 9.8%
WACC

Cummins WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.18 1.34
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.30% 12.40%
Tax rate 22.10% 22.50%
Debt/Equity ratio 0.17 0.17
Cost of debt 4.00% 5.10%
After-tax WACC 8.4% 11.1%
Selected WACC 9.8%