MSTR
MicroStrategy Inc
Price:  
114.30 
USD
Volume:  
8,787,720.00
United States | Software
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MicroStrategy WACC - Weighted Average Cost of Capital

The WACC of MicroStrategy Inc (MSTR) is 8.5%.

The Cost of Equity of MicroStrategy Inc (MSTR) is 8.90%.
The Cost of Debt of MicroStrategy Inc (MSTR) is 7.00%.

Range Selected
Cost of equity 7.50% - 10.30% 8.90%
Tax rate 24.90% - 45.30% 35.10%
Cost of debt 7.00% - 7.00% 7.00%
WACC 7.3% - 9.7% 8.5%
WACC

MicroStrategy WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.8 0.97
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.50% 10.30%
Tax rate 24.90% 45.30%
Debt/Equity ratio 0.09 0.09
Cost of debt 7.00% 7.00%
After-tax WACC 7.3% 9.7%
Selected WACC 8.5%