DFS
Discover Financial Services
Price:  
123.22 
USD
Volume:  
1,003,826.00
United States | Consumer Finance
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Discover WACC - Weighted Average Cost of Capital

The WACC of Discover Financial Services (DFS) is 6.5%.

The Cost of Equity of Discover Financial Services (DFS) is 8.25%.
The Cost of Debt of Discover Financial Services (DFS) is 5.00%.

Range Selected
Cost of equity 6.80% - 9.70% 8.25%
Tax rate 22.90% - 23.00% 22.95%
Cost of debt 5.00% - 5.00% 5.00%
WACC 5.6% - 7.4% 6.5%
WACC

Discover WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.63 0.87
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.80% 9.70%
Tax rate 22.90% 23.00%
Debt/Equity ratio 0.66 0.66
Cost of debt 5.00% 5.00%
After-tax WACC 5.6% 7.4%
Selected WACC 6.5%