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