COST
Costco Wholesale Corp
Price:  
876.68 
USD
Volume:  
2,074,606.00
United States | Food & Staples Retailing
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Costco WACC - Weighted Average Cost of Capital

The WACC of Costco Wholesale Corp (COST) is 7.2%.

The Cost of Equity of Costco Wholesale Corp (COST) is 7.30%.
The Cost of Debt of Costco Wholesale Corp (COST) is 4.25%.

Range Selected
Cost of equity 6.20% - 8.40% 7.30%
Tax rate 24.50% - 24.70% 24.60%
Cost of debt 4.00% - 4.50% 4.25%
WACC 6.1% - 8.3% 7.2%
WACC

Costco WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.5 0.63
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.20% 8.40%
Tax rate 24.50% 24.70%
Debt/Equity ratio 0.02 0.02
Cost of debt 4.00% 4.50%
After-tax WACC 6.1% 8.3%
Selected WACC 7.2%