LUV
Southwest Airlines Co
Price:  
34.47 
USD
Volume:  
3,573,315.00
United States | Airlines
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LUV WACC - Weighted Average Cost of Capital

The WACC of Southwest Airlines Co (LUV) is 8.3%.

The Cost of Equity of Southwest Airlines Co (LUV) is 9.05%.
The Cost of Debt of Southwest Airlines Co (LUV) is 8.75%.

Range Selected
Cost of equity 7.80% - 10.30% 9.05%
Tax rate 24.90% - 26.10% 25.50%
Cost of debt 4.20% - 13.30% 8.75%
WACC 6.5% - 10.2% 8.3%
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 0.86 0.97
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.80% 10.30%
Tax rate 24.90% 26.10%
Debt/Equity ratio 0.4 0.4
Cost of debt 4.20% 13.30%
After-tax WACC 6.5% 10.2%
Selected WACC 8.3%