KAR
KAR Auction Services Inc
Price:  
17.08 
USD
Volume:  
1,583,327.00
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 8.6%.

The Cost of Equity of KAR Auction Services Inc (KAR) is 8.75%.
The Cost of Debt of KAR Auction Services Inc (KAR) is 10.80%.

Range Selected
Cost of equity 7.40% - 10.10% 8.75%
Tax rate 26.20% - 27.00% 26.60%
Cost of debt 9.90% - 11.70% 10.80%
WACC 7.4% - 9.8% 8.6%
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 0.77 0.93
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.40% 10.10%
Tax rate 26.20% 27.00%
Debt/Equity ratio 0.19 0.19
Cost of debt 9.90% 11.70%
After-tax WACC 7.4% 9.8%
Selected WACC 8.6%