LUV
Southwest Airlines Co
Price:  
28.77 
USD
Volume:  
5,921,971.00
United States | Airlines
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LUV WACC - Weighted Average Cost of Capital

The WACC of Southwest Airlines Co (LUV) is 8.8%.

The Cost of Equity of Southwest Airlines Co (LUV) is 9.25%.
The Cost of Debt of Southwest Airlines Co (LUV) is 10.45%.

Range Selected
Cost of equity 8.20% - 10.30% 9.25%
Tax rate 26.10% - 26.40% 26.25%
Cost of debt 4.20% - 16.70% 10.45%
WACC 6.6% - 11.0% 8.8%
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 0.95 0.97
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.20% 10.30%
Tax rate 26.10% 26.40%
Debt/Equity ratio 0.47 0.47
Cost of debt 4.20% 16.70%
After-tax WACC 6.6% 11.0%
Selected WACC 8.8%