The WACC of Illinois Tool Works Inc (ITW) is 8.4%.
Range | Selected | |
Cost of equity | 7.80% - 10.20% | 9.00% |
Tax rate | 21.60% - 22.30% | 21.95% |
Cost of debt | 4.00% - 4.50% | 4.25% |
WACC | 7.3% - 9.6% | 8.4% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.85 | 0.95 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 7.80% | 10.20% |
Tax rate | 21.60% | 22.30% |
Debt/Equity ratio | 0.11 | 0.11 |
Cost of debt | 4.00% | 4.50% |
After-tax WACC | 7.3% | 9.6% |
Selected WACC | 8.4% | |