KMX
Carmax Inc
Price:  
86.26 
USD
Volume:  
1,129,415.00
United States | Specialty Retail
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

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 11.55%.
The Cost of Debt of Carmax Inc (KMX) is 9.80%.

Range Selected
Cost of equity 9.70% - 13.40% 11.55%
Tax rate 23.20% - 23.60% 23.40%
Cost of debt 4.00% - 15.60% 9.80%
WACC 5.8% - 12.5% 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 1.26 1.52
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.70% 13.40%
Tax rate 23.20% 23.60%
Debt/Equity ratio 1.42 1.42
Cost of debt 4.00% 15.60%
After-tax WACC 5.8% 12.5%
Selected WACC 9.2%