KAR
KAR Auction Services Inc
Price:  
17.86 
USD
Volume:  
448,348.00
United States | Commercial Services & Supplies
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KAR WACC - Weighted Average Cost of Capital

The WACC of KAR Auction Services Inc (KAR) is 9.2%.

The Cost of Equity of KAR Auction Services Inc (KAR) is 9.45%.
The Cost of Debt of KAR Auction Services Inc (KAR) is 10.80%.

Range Selected
Cost of equity 8.10% - 10.80% 9.45%
Tax rate 26.20% - 27.00% 26.60%
Cost of debt 9.90% - 11.70% 10.80%
WACC 8.0% - 10.5% 9.2%
WACC

KAR WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.92 1.06
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.10% 10.80%
Tax rate 26.20% 27.00%
Debt/Equity ratio 0.18 0.18
Cost of debt 9.90% 11.70%
After-tax WACC 8.0% 10.5%
Selected WACC 9.2%