IBM
International Business Machines Corp
Price:  
185.03 
USD
Volume:  
6,441,770.00
United States | IT Services
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IBM WACC - Weighted Average Cost of Capital

The WACC of International Business Machines Corp (IBM) is 8.1%.

The Cost of Equity of International Business Machines Corp (IBM) is 9.35%.
The Cost of Debt of International Business Machines Corp (IBM) is 5.00%.

Range Selected
Cost of equity 8.00% - 10.70% 9.35%
Tax rate 10.50% - 31.60% 21.05%
Cost of debt 5.00% - 5.00% 5.00%
WACC 7.2% - 9.0% 8.1%
WACC

IBM WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.9 1.04
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.00% 10.70%
Tax rate 10.50% 31.60%
Debt/Equity ratio 0.3 0.3
Cost of debt 5.00% 5.00%
After-tax WACC 7.2% 9.0%
Selected WACC 8.1%