KMX
Carmax Inc
Price:  
83.02 
USD
Volume:  
1,002,712.00
United States | Specialty Retail
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Carmax WACC - Weighted Average Cost of Capital

The WACC of Carmax Inc (KMX) is 5.9%.

The Cost of Equity of Carmax Inc (KMX) is 9.10%.
The Cost of Debt of Carmax Inc (KMX) is 5.00%.

Range Selected
Cost of equity 7.50% - 10.70% 9.10%
Tax rate 23.20% - 23.60% 23.40%
Cost of debt 5.00% - 5.00% 5.00%
WACC 5.3% - 6.6% 5.9%
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 0.78 1.05
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.50% 10.70%
Tax rate 23.20% 23.60%
Debt/Equity ratio 1.5 1.5
Cost of debt 5.00% 5.00%
After-tax WACC 5.3% 6.6%
Selected WACC 5.9%