KMX
Carmax Inc
Price:  
84.15 
USD
Volume:  
1,443,730.00
United States | Specialty Retail
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Carmax WACC - Weighted Average Cost of Capital

The WACC of Carmax Inc (KMX) is 7.8%.

The Cost of Equity of Carmax Inc (KMX) is 9.95%.
The Cost of Debt of Carmax Inc (KMX) is 8.20%.

Range Selected
Cost of equity 8.60% - 11.30% 9.95%
Tax rate 23.20% - 23.60% 23.40%
Cost of debt 4.00% - 12.40% 8.20%
WACC 5.4% - 10.2% 7.8%
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 1.04 1.15
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.60% 11.30%
Tax rate 23.20% 23.60%
Debt/Equity ratio 1.44 1.44
Cost of debt 4.00% 12.40%
After-tax WACC 5.4% 10.2%
Selected WACC 7.8%