LUV
Southwest Airlines Co
Price:  
29.70 
USD
Volume:  
8,498,640.00
United States | Airlines
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LUV WACC - Weighted Average Cost of Capital

The WACC of Southwest Airlines Co (LUV) is 6.6%.

The Cost of Equity of Southwest Airlines Co (LUV) is 7.80%.
The Cost of Debt of Southwest Airlines Co (LUV) is 5.60%.

Range Selected
Cost of equity 6.80% - 8.80% 7.80%
Tax rate 26.10% - 26.40% 26.25%
Cost of debt 4.20% - 7.00% 5.60%
WACC 5.6% - 7.6% 6.6%
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 0.63 0.7
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.80% 8.80%
Tax rate 26.10% 26.40%
Debt/Equity ratio 0.46 0.46
Cost of debt 4.20% 7.00%
After-tax WACC 5.6% 7.6%
Selected WACC 6.6%