KAR
KAR Auction Services Inc
Price:  
20.57 
USD
Volume:  
545,929.00
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 7.9%.

The Cost of Equity of KAR Auction Services Inc (KAR) is 8.00%.
The Cost of Debt of KAR Auction Services Inc (KAR) is 10.40%.

Range Selected
Cost of equity 6.90% - 9.10% 8.00%
Tax rate 26.20% - 27.00% 26.60%
Cost of debt 9.10% - 11.70% 10.40%
WACC 6.9% - 9.0% 7.9%
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 0.66 0.75
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.90% 9.10%
Tax rate 26.20% 27.00%
Debt/Equity ratio 0.17 0.17
Cost of debt 9.10% 11.70%
After-tax WACC 6.9% 9.0%
Selected WACC 7.9%