IBM
International Business Machines Corp
Price:  
170.55 
USD
Volume:  
3,385,612.00
United States | IT Services
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IBM WACC - Weighted Average Cost of Capital

The WACC of International Business Machines Corp (IBM) is 7.8%.

The Cost of Equity of International Business Machines Corp (IBM) is 9.30%.
The Cost of Debt of International Business Machines Corp (IBM) is 4.70%.

Range Selected
Cost of equity 7.80% - 10.80% 9.30%
Tax rate 10.50% - 31.60% 21.05%
Cost of debt 4.00% - 5.40% 4.70%
WACC 6.7% - 8.9% 7.8%
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 0.86 1.06
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.80% 10.80%
Tax rate 10.50% 31.60%
Debt/Equity ratio 0.36 0.36
Cost of debt 4.00% 5.40%
After-tax WACC 6.7% 8.9%
Selected WACC 7.8%