KMX
Carmax Inc
Price:  
71.20 
USD
Volume:  
1,701,103.00
United States | Specialty Retail
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Carmax WACC - Weighted Average Cost of Capital

The WACC of Carmax Inc (KMX) is 9.2%.

The Cost of Equity of Carmax Inc (KMX) is 12.10%.
The Cost of Debt of Carmax Inc (KMX) is 9.80%.

Range Selected
Cost of equity 10.60% - 13.60% 12.10%
Tax rate 23.20% - 23.60% 23.40%
Cost of debt 4.00% - 15.60% 9.80%
WACC 5.9% - 12.6% 9.2%
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 1.47 1.57
Additional risk adjustments 0.0% 0.5%
Cost of equity 10.60% 13.60%
Tax rate 23.20% 23.60%
Debt/Equity ratio 1.66 1.66
Cost of debt 4.00% 15.60%
After-tax WACC 5.9% 12.6%
Selected WACC 9.2%