LUV
Southwest Airlines Co
Price:  
29.88 
USD
Volume:  
7,801,127.00
United States | Airlines
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LUV WACC - Weighted Average Cost of Capital

The WACC of Southwest Airlines Co (LUV) is 5.8%.

The Cost of Equity of Southwest Airlines Co (LUV) is 6.75%.
The Cost of Debt of Southwest Airlines Co (LUV) is 5.00%.

Range Selected
Cost of equity 5.80% - 7.70% 6.75%
Tax rate 26.10% - 26.40% 26.25%
Cost of debt 5.00% - 5.00% 5.00%
WACC 5.1% - 6.5% 5.8%
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 0.41 0.51
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.80% 7.70%
Tax rate 26.10% 26.40%
Debt/Equity ratio 0.43 0.43
Cost of debt 5.00% 5.00%
After-tax WACC 5.1% 6.5%
Selected WACC 5.8%