KMX
Carmax Inc
Price:  
79.00 
USD
Volume:  
2,193,424.00
United States | Specialty Retail
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Carmax WACC - Weighted Average Cost of Capital

The WACC of Carmax Inc (KMX) is 7.1%.

The Cost of Equity of Carmax Inc (KMX) is 10.95%.
The Cost of Debt of Carmax Inc (KMX) is 6.10%.

Range Selected
Cost of equity 9.40% - 12.50% 10.95%
Tax rate 23.20% - 23.60% 23.40%
Cost of debt 4.00% - 8.20% 6.10%
WACC 5.5% - 8.7% 7.1%
WACC

Carmax WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.19 1.37
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.40% 12.50%
Tax rate 23.20% 23.60%
Debt/Equity ratio 1.6 1.6
Cost of debt 4.00% 8.20%
After-tax WACC 5.5% 8.7%
Selected WACC 7.1%