IBM
International Business Machines Corp
Price:  
261.28 
USD
Volume:  
3,920,306.00
United States | IT Services
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IBM WACC - Weighted Average Cost of Capital

The WACC of International Business Machines Corp (IBM) is 7.5%.

The Cost of Equity of International Business Machines Corp (IBM) is 8.35%.
The Cost of Debt of International Business Machines Corp (IBM) is 5.00%.

Range Selected
Cost of equity 7.10% - 9.60% 8.35%
Tax rate 13.40% - 31.60% 22.50%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.6% - 8.4% 7.5%
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 0.71 0.84
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.10% 9.60%
Tax rate 13.40% 31.60%
Debt/Equity ratio 0.23 0.23
Cost of debt 5.00% 5.00%
After-tax WACC 6.6% 8.4%
Selected WACC 7.5%