ITW
Illinois Tool Works Inc
Price:  
238.95 
USD
Volume:  
1,170,156.00
United States | Machinery
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ITW WACC - Weighted Average Cost of Capital

The WACC of Illinois Tool Works Inc (ITW) is 8.9%.

The Cost of Equity of Illinois Tool Works Inc (ITW) is 9.60%.
The Cost of Debt of Illinois Tool Works Inc (ITW) is 4.30%.

Range Selected
Cost of equity 8.40% - 10.80% 9.60%
Tax rate 21.60% - 22.30% 21.95%
Cost of debt 4.00% - 4.60% 4.30%
WACC 7.8% - 10.1% 8.9%
WACC

ITW WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.98 1.06
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.40% 10.80%
Tax rate 21.60% 22.30%
Debt/Equity ratio 0.12 0.12
Cost of debt 4.00% 4.60%
After-tax WACC 7.8% 10.1%
Selected WACC 8.9%