OTIS
Otis Worldwide Corp
Price:  
100.62 
USD
Volume:  
1,612,973.00
United States | Machinery
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Otis WACC - Weighted Average Cost of Capital

The WACC of Otis Worldwide Corp (OTIS) is 8.5%.

The Cost of Equity of Otis Worldwide Corp (OTIS) is 9.70%.
The Cost of Debt of Otis Worldwide Corp (OTIS) is 4.30%.

Range Selected
Cost of equity 8.40% - 11.00% 9.70%
Tax rate 27.00% - 27.50% 27.25%
Cost of debt 4.00% - 4.60% 4.30%
WACC 7.4% - 9.6% 8.5%
WACC

Otis WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.98 1.09
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.40% 11.00%
Tax rate 27.00% 27.50%
Debt/Equity ratio 0.21 0.21
Cost of debt 4.00% 4.60%
After-tax WACC 7.4% 9.6%
Selected WACC 8.5%