LUV
Southwest Airlines Co
Price:  
32.65 
USD
Volume:  
7,025,848.00
United States | Airlines
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LUV WACC - Weighted Average Cost of Capital

The WACC of Southwest Airlines Co (LUV) is 6.2%.

The Cost of Equity of Southwest Airlines Co (LUV) is 7.10%.
The Cost of Debt of Southwest Airlines Co (LUV) is 5.60%.

Range Selected
Cost of equity 6.00% - 8.20% 7.10%
Tax rate 26.10% - 26.40% 26.25%
Cost of debt 4.20% - 7.00% 5.60%
WACC 5.1% - 7.3% 6.2%
WACC

LUV WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.46 0.59
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.00% 8.20%
Tax rate 26.10% 26.40%
Debt/Equity ratio 0.42 0.42
Cost of debt 4.20% 7.00%
After-tax WACC 5.1% 7.3%
Selected WACC 6.2%