INTU
Intuit Inc
Price:  
720.13 
USD
Volume:  
5,325,253
United States | Software

Intuit WACC - Weighted Average Cost of Capital

The WACC of Intuit Inc (INTU) is 8.8%.

The Cost of Equity of Intuit Inc (INTU) is 8.95%.
The Cost of Debt of Intuit Inc (INTU) is 4.25%.

RangeSelected
Cost of equity7.4% - 10.5%8.95%
Tax rate18.0% - 19.0%18.5%
Cost of debt4.0% - 4.5%4.25%
WACC7.3% - 10.3%8.8%
WACC

Intuit WACC calculation

CategoryLowHigh
Long-term bond rate3.9%4.4%
Equity market risk premium4.6%5.6%
Adjusted beta0.771
Additional risk adjustments0.0%0.5%
Cost of equity7.4%10.5%
Tax rate18.0%19.0%
Debt/Equity ratio
0.030.03
Cost of debt4.0%4.5%
After-tax WACC7.3%10.3%
Selected WACC8.8%

Intuit's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for Intuit:

cost_of_equity (8.95%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.77) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.