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